91-1310 - Motor Fuel Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

XXXXX :

: Appeal No. 91-1310

: Account No. XXXXX

_______________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX, attorney and XXXXX, Vice-President of XXXXX for 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 motor fuel tax.

2. The period in question is the month of XXXXX.

3. Petitioner properly filed its motor fuel tax return for the month of XXXXX at the end of XXXXX. Petitioner enclosed a check for $$$$$ for the tax amount due. This check was returned for insufficient funds.

4. Petitioner was assessed a $$$$$ penalty plus interest for lack of payment.

5. Petitioner paid the amount outstanding in three installments, clearing the balance on XXXXX.

6. Petitioner obtains its XXXXX from XXXXX and XXXXX XXXXX.

7. By XXXXX the XXXXX had begun, causing XXXXX prices to increase.

8. In XXXXX, a XXXXX in the XXXXX caused XXXXX Supply Company to shut off service to a few of its larger industrial users. Petitioner, in turn, supplied these XXXXX customers with XXXXX of XXXXX.

9. The combination of the XXXXX and XXXXX caused Petitioner to have high accounts receivables and high accounts payables throughout XXXXX.

10. XXXXX and XXXXX companies electronically debit Petitioner's bank account on the XXXXX of each month for the previous month's purchases.

11. Petitioner typically receives its customers payments for the previous month's purchases on the XXXXX of each month.

12. Due to this accounts payable and accounts receivable situation, Petitioner arranged a loan with the bank to cover Petitioner on its electronic debits until the account was reimbursed with accounts receivables.

13. During XXXXX, the bank refused to extend Petitioner's credit limit to cover the higher costs that stemmed from the XXXXX and XXXXX. As a result, Petitioner's XXXXX tax payment by check bounced.

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

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the XXXXX. It is so ordered.

DATED this 29th day of January, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner