BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1782
: 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 XXXXX, owner.
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 second quarter
XXXXX.
3. Petitioner filed its second quarter XXXXX
sales and use tax return on time.
4. Petitioner maintains that it also sent in
the tax amount due with the return.
5. In support thereof, Petitioner submitted a
copy of his check register showing the check number sequence, check number and
the amount payable to the Tax Commission.
6. XXXXX, the owner, testified that he knew the
check hadn't cleared, but waited, thinking that it would clear in the next
three to four months. XXXXX called the
bank and told it to honor his check whenever it was presented.
7. He stated that this same thing happened to
him in XXXXX and the Tax Commission at that time told him to wait three to four
months because sometimes checks get misplaced.
On the previous occasion, the check did eventually clear.
8. In XXXXX, Petitioner moved to a different
location and apprised the Tax Commission of the new address. Petitioner stated that it received other
mail from the Commission at the new address, but that sales and use tax
correspondence was addressed to its old address.
9. Petitioner noticed in late XXXXX that the
check in question still had not cleared.
10. XXXXX stated he called the Tax Commission
about the matter and suggested that he stop payment and re-issue a new check.
11. He testified that a Commission employee told
him to wait and that someone would get back to him.
12. Petitioner's Tax Commission records show
that in XXXXX the Commission requested Petitioner to send a copy of the missing
check.
13. Petitioner's new address was noted on its
sales and use tax account in XXXXX.
14. XXXXX testified that he did not receive any
correspondence about the status of the second quarter of XXXXX until XXXXX when
he received a late notice.
15. Petitioner paid the sales tax in question in
XXXXX after he stopped payment on the first check. (This check is still lost.)
16. Petitioner is requesting a waiver of the ten
percent late payment penalty and the interest.
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 not been
shown which would justify a waiver of the penalty associated with the sales and
use tax due on the second quarter XXXXX.
Even assuming that Petitioner did not receive a late notice until XXXXX,
Petitioner still did not pay the second quarter XXXXX sales and use tax until
mid-XXXXX. It is so ordered.
DATED
this 14th day of April, 1993.
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