BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 91-1415
UTAH STATE TAX COMMISSION, :
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 in behalf of the Commission. Present and representing the Petitioner were XXXXX, Petitioner's bookkeeper, and XXXXX, Branch Manager at 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 the second quarter of XXXXX.
3. On XXXXX, Petitioner timely mailed its sales tax prepayment in the amount of $$$$$ to the Tax Commission.
4. This check was returned for insufficient funds.
5. XXXXX, Branch Manager where Petitioner banks, testified that the bank erroneously bounced Petitioner's check. Petitioner did have sufficient funds in the bank when the check was processed.
6. The bank became aware of the bounced check late in the summer of XXXXX when the Tax Commission called to find out its status.
7. The bank discovered the error and cleared the check on XXXXX. Petitioner never saw the check again after XXXXX.
8. The bank account upon which the check was drawn is a non-interest bearing account.
9. The tax Commission waived the penalty on XXXXX.
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
It is the policy of the tax Commission to seldom waive interest in any given case unless extenuating circumstances exist. In this case, the bank's error was completely beyond the control of Petitioner.
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the interest associated with the second quarter of XXXXX. It is so ordered.
DATED this 13th day of February, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes