91-1228 - Special Fuel

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

XXXXX :

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

:

AUDITING DIVISION OF THE : Appeal No. 91-1228

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________

STATEMENT OF CASE

After submitting briefs on the subject matter of this case, both Petitioner and Respondent waived the right to a formal hearing. This decision is based on the entire contents of the file as presently constituted on XXXXX.

Based upon the evidence and information contained in the file, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is special fuel tax.

2. The audit period in question is XXXXX through XXXXX.

3. An auditor discovered an overpayment of $$$$$ for the period in question.

4. This overpayment was applied to deficiencies that appeared in later years of the original audit.

5. After deficiencies were cleared up, Petitioner had a credit of $$$$$ remaining from the overpayment.

6. Petitioner is requesting the Tax Commission to refund the remaining amount of the overpayment plus interest.

7. The Auditing Division has refused to include interest in the refund based on its interpretation of the law.

CONCLUSIONS OF LAW

If the Commission, illegally or through error, collects or receives any special fuel tax, penalty, or interest imposed by this part, the amount of tax, penalty, or interest, upon written application, shall be refunded to the person paying it. The application shall state the specific grounds on which it is founded within two years after the date of payment, and whether the sums were paid voluntarily or under protest. Utah Code Ann. §59-13-318(1).

Also, the rate of interest applicable to any tax provision administered directly by the Commission is 12% annually. Utah Code Ann. §59-1-402.

DECISION AND ORDER

In this case, the Auditing Division discovered the overpayment of taxes outside what could be interpreted to be a two year statute of limitations for refund requests on special fuel tax.

The propriety of allowing Petitioner a refund based on this XXXXX overpayment is not in question as well it should not be. Generally stated, an audit is a two-way street. Identifiable deficiencies will be assessed as well as overpayments returned.

In accordance with Utah Code Ann. §59-1-402, the overpayment shall be refunded with interest.

Based on the foregoing, the Tax Commission finds that Petitioner is entitled to interest on its overpayment that was discovered by the Auditing Division during the period of XXXXX through XXXXX.

DATED this 15th day of August, 1992.

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