BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-1252
: 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 were XXXXX and 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 third quarter XXXXX.
3. The Petitioner timely filed and paid its sales tax return for third quarter of XXXXX.
4. Without the knowledge of the Petitioner, the bank upon which the check was drawn erroneously dishonored the check and returned the check to the Commission because of insufficient funds.
5. The Petitioner was not aware of the dishonored check until it received notice from the Tax Commission on XXXXX, almost five months after the occurrence.
6. As a result of the dishonored check, the Petitioner was assessed a penalty in the amount of XXXXX, and interest in the amount of $$$$$. The penalty was waived by subsequent Commission action.
7. The checking account from which the check in question was drawn was a noninterest bearing account.
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
At the outset, the Commission notes that as a general rule, interest assessed on the late payment or filing of returns is not waived. Under the unusual circumstances presented here, however, the Tax Commission finds that sufficient cause has been shown which would justify waiver of the interest associated with the sales tax return for the third quarter of XXXXX. It is so ordered.
DATED this 19th day of December, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes