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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes *
Commissioner Commissioner