BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
) AND FINAL DECISION
: Appeal No. 92-1288
) 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 was XXXXX, corporate secretary.
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 and use tax.
2. The periods in question are the second and third quarters of XXXXX.
3. Petitioner timely filed its returns for the quarters in question. The two respective payment checks bounced.
4. Ms. XXXXX, Petitioner's bookkeeper, testified that she was unaware that these checks did not clear until informed by the Tax Commission months later.
5. Although Ms. XXXXX did find the $$$$$ insufficient funds charges on Petitioner's monthly bank statement, she did not know which checks had not cleared.
6. Petitioner has been late on one other quarter in XXXXX.
7. Ms. XXXXX acknowledged that the corporation has been experiencing financial difficulties recently.
8. Petitioner was assessed a ten percent penalty on each of the two quarters involved, plus interest. Petitioner is seeking a waiver of the penalties only.
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 apparent that Petitioner had a cashflow problem in XXXXX. Nonetheless, Petitioner still had an obligation to remit sales and use taxes in a timely manner. Under the circumstances, the Tax Commission sees no reason why Petitioner could not pay the state the taxes Petitioner had collected on its behalf when they were due.
Additionally, Petitioner should have more closely examined its accounts when it was notified of the insufficient funds charges to assure itself the tax payments were properly made.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the sales and use taxes due the second and third quarters of XXXXX. It is so ordered.
DATED this 2nd day of December, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
<PS:"Signature Block">Chairman Commissioner
Joe B. Pacheco S. Blaine Willes