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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner