BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-0681
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Alan Hennebold, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX and XXXXX.
Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The period in question is XXXXX through XXXXX.
3. The petitioner filed its sales tax return for the second quarter of XXXXX on XXXXX. It enclosed a check in full payment of the sales tax liability with the return. In XXXXX, Petitioner was advised by Tax Commission staff that no return or payment had been received by the Commission. The Petitioner immediately submitted a copy of its original return with a replacement check in payment of the tax liability. It then issued a stop payment order on the original check.
4. No penalty has been assessed against the Petitioner with respect to the delayed payment of the second quarter XXXXX tax liability. However, interest has been charged.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
No penalty has been assessed against the Petitioner in this matter, in recognition of the fact that it is without fault for the late sales tax payment. While assessment of penalty is inappropriate under the circumstances, the assessment of interest is a reasonable charge for the Petitioner's use of tax funds until the time they were actually paid to the Commission.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the Petitioner's sales tax liability for the second quarter XXXXX. It is so ordered.
DATED this 5th day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes*