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
Commissioner Commissioner