BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
XXXXX :
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 91-1415
UTAH STATE TAX COMMISSION, :
Respondent. :
__________________________________
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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner