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