91-1224 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-1224

: Account No. XXXXX

_______________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. G. Blaine Davis, Administrative Law Judge, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, the owner of XXXXX the petitioner.

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 fourth quarter XXXXX.

3. The Petitioner timely filed the fourth quarter XXXXX sales tax return.

4. Petitioner enclosed with the return a check made out for the amount of the tax in the amount of $$$$$.

5. The check was returned from the bank for insufficient funds.

6. The Petitioner was contacted by the Tax Commission and immediately brought in a cashier's check on XXXXX, for the full balance of the tax.

7. At the hearing, Petitioner presented copies of the bank statements for XXXXX and XXXXX.

8. On the date the check was written, in the amount of $$$$$, the balance in the bank account was $$$$$.

9. On the date the check was returned by Petitioner's Bank, XXXXX, the balance in the bank as shown by the bank statement was $$$$$, or about $$$$$ dollars short of the amount of the tax.

10. Three days thereafter, on XXXXX, sufficient funds were deposited to bring the balance to $$$$$, more than $$$$$ dollars over the amount which would have been required to clear the check.

11. Petitioner further represents that the XXXXX in late XXXXX and early XXXXX caused his business to substantially reduce, causing him to incur substantial losses for the time period.

12. He further represents that if he had been making money during the time period he would not object to paying the penalty, but he feels his business cannot withstand the requirement to pay the penalty in the amount of $$$$$.

13. Petitioner represents the bank did not send to him a separate notice that the check had been returned, and that the only notice sent was enclosed in his bank statement at the end of XXXXX.

14. He further represented that he did not see that notice of the returned check, because other persons do the accounting and the bank statement was sent directly to the accountant.

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

From the day the check was written until XXXXX days later, the Petitioner never had sufficient funds in the bank for the check to clear.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty or interest associated with the sales tax return for the fourth quarter of XXXXX. It is so ordered.

DATED this 6th day of December, 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