BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0836
: 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 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 corporate franchise
tax.
2. The period in question is the tax year
XXXXX.
3. The Petitioner's tax return was due
XXXXX. Petitioner obtained an extension
of six months, making the return due XXXXX.
The Petitioner filed the return on XXXXX, by certified mail, and
included its check in the amount of $$$$$ to pay the tax liability established
by the return.
4. The Commission has no record of receiving
Petitioner's payment. In early XXXXX, Commission staff notified Petitioner that
payment of the tax liability had not been received. The Petitioner reviewed its bank records, discovered that its
prior check had not been presented for payment, and immediately issued check
number XXXXX in payment of the tax liability.
5. As a result of the Petitioner's delay in
paying the tax, Commission staff assessed a late payment penalty of $$$$$,
together with interest in the amount of $$$$$ as of XXXXX. The penalty was subsequently waived by the
Commission, leaving the interest still due.
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
In
the present case, the evidence establishes that the Petitioner filed and paid
its XXXXX corporate franchise tax in a timely fashion. Through no fault of the Petitioner, its
check in payment of the tax was not cashed, and the tax liability was not
satisfied until the end of XXXXX.
The
Commission has previously waived all penalty charges assessed against the
Petitioner. The Petitioner now seeks
the waiver of interest charges for that period of time between its filing of
the tax return in XXXXX and the payment of the tax in XXXXX. However, during that period of time the
Petitioner had use of the funds which should have been paid to the Commission.
Interest charges represent a reasonable charge for Petitioner's use of the
funds.
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 XXXXX
corporate franchise tax assessment of the Petitioner. It is so ordered.
DATED
this 27th day of August, 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