91-0689 - Sales

 

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