BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
) Appeal No.
92-1501
: Account
No. XXXXX
_________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing by
telephone on XXXXX. Lisa L. Olpin,
Presiding Officer, heard the matter for and on behalf of the Commission. Representing the Petitioner was 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 and use tax.
2. The period in question is the third quarter
of XXXXX.
3. Petitioner filed its third quarter XXXXX
sales and use tax return on time. A
check in the proper amount was also submitted with the return.
4. This check subsequently failed to clear Petitioner's
bank.
5. The bank notified Petitioner as soon as it
was rejected.
6. Petitioner's employee, XXXXX, immediately
called the Tax Commission to remedy the problem.
7. Ms. XXXXX received a telephone recording at
the Tax Commission that instructed her to wait ninety days before inquiring
about the quarter in question so that the computer could update.
8. At the end of the waiting period, Petitioner
received a letter from the Tax Commission assessing a ten percent penalty for
late payment plus interest.
9. Petitioner requests a waiver of the penalty
assessments because 1) it tried to renegotiate the bounced check well within
the ninety days; and 2) Petitioner's bank failed to contact Petitioner about
the lack of funds so that Petitioner could authorize the bank to transfer money
from Petitioner's other account into the deficient account. (The bank routinely called Petitioner
whenever the account was deficient so that Petitioner could authorize a
transfer of funds.)
10. Petitioner's bank stated that Petitioner did
have ample funds in its other account.
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 been
shown which would justify a reduction of the penalty assessed for the period in
question to $$$$$. Interest is not
waived. IT IS SO ORDERED.
DATED
this 12th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner