BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-0703
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was 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 the second quarter of XXXXX.
3. The Petitioner is located in XXXXX. Its accounting and tax matters are handled by a CPA firm located in XXXXX Utah.
4. The Petitioner's accounting firm prepared the sales tax return for the second quarter of XXXXX, on XXXXX, and sent that to the Petitioner for filing. That return, along with several other returns including unemployment insurance returns, state withholding tax returns, and state insurance returns, were prepared at the same time by the accounting firm and sent to the Petitioner. Upon receipt of the returns, the Petitioner made out the necessary checks and mailed those checks with the returns, including the return in question, on XXXXX. Although mailed on XXXXX the checks were dated XXXXX.
5. On XXXXX, the above referenced checks were returned to the accounting firm for reconciliation. It was discovered at that time that the check made out to the Tax Commission for the sales tax for the second quarter of XXXXX, had not cleared. Approximately one week later, the Petitioner received notice from the Tax Commission that the return had not been filed nor paid. The Petitioner issued a replacement check on XXXXX.
6. The checking account upon which the check in question was drawn did not have sufficient funds in it to cover the check, however, the Petitioner did have an available line of credit with the bank which would have been sufficient to cover the amount of the check. Therefore, had the check been presented for payment, it would have been honored. This situation happens on a regular basis.
7. The Petitioner has a good history of filing and paying its tax obligations.
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
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the sales tax for the second quarter of XXXXX. It is so ordered.
DATED this 15th day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes *