BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0689
: 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, bookkeeper, and XXXXX, secretary.
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 the second
quarter, XXXXX.
3. As was her practice in such matters, XXXXX
prepared Petitioner's sales tax return for the second quarter, XXXXX during
late XXXXX. On XXXXX, she sent the
original return and a check in the amount of $$$$$ as full payment of the tax
to the Commission.
4. On approximately XXXXX, the Petitioner
received notice from the Commission that it had failed to file its sales tax
return for the second quarter XXXXX.
The Petitioner's staff contacted its bank and discovered its check in
payment of the tax had not been presented for payment. On XXXXX, the Petitioner filed a copy of its
original return with the Commission and tendered full payment of the tax due.
5. Because the Petitioner's return was not
received until XXXXX, more than 60 days after its due date, a 10% penalty for
late filing was assessed against the Petitioner. That penalty amounted to $$$$$.
Interest was also assessed against Petitioner from XXXXX, when the tax
was due, to XXXXX, when the tax was paid.
6. The Petitioner has provided a statement from
its bank confirming that sufficient funds were on deposit in Petitioner's
account to cover Petitioner's tax liability.
7. The Petitioner has a history of timely
filing and payment of its sales tax liability.
CONCLUSIONS OF LAW
Utah
law authorizes imposition of a 10% penalty for late filing of a tax-due
return. (Utah Code Ann. §59-1-401(3).)
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
The
Petitioner has established that it mailed its sales tax return for the second
quarter XXXXX in a timely fashion and included payment of its tax liability
with the return. Presumably, the return
was lost in the mail. As soon as the
Petitioner was advised of the lost return, it filed a duplicate return and made
full payment of its tax liability. As
the foregoing circumstances were beyond Petitioner's control and the Petitioner
has a record of properly filing and paying its sales tax liability, the
Commission finds reasonable cause to waive the penalty imposed in this matter.
With
respect to interest assessed against the Petitioner, such interest is a
reasonable charge for the use of the funds in question while they remained in
Petitioner's control. The Commission
therefore declines to waive interest in this matter.
In
summary, the Commission hereby waives penalty assessed against the Petitioner,
but declines to waive interest charges.
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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes*
Commissioner Commissioner