BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
In Re: )
:
XXXXX &
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-2148
: 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, president of
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 first quarter
of XXXXX.
3. According to Tax Commission records,
Petitioner's first quarter XXXXX sales and use tax and resort tax returns with
corresponding payments were received on XXXXX.
The Commission assessed Petitioner's sales and use tax account a ten
percent penalty for late filing and another $$$$$ penalty for late payment.
4. The Commission also assessed Petitioner's
resort tax account two ten percent late penalties for the late filing and late
payment.
5. Petitioner is requesting a waiver of these
penalties and interest amounts.
6. Mr. XXXXX, president of XXXXX, stated that
he sent in the returns with payment on time.
7. He was unaware that these returns and
payments were not timely received at the Tax Commission until the Commission
notified him.
8. Then, he found in his record keeping that
the two checks he had sent in had not yet cleared Petitioner's account.
9. Petitioner's accountant reconciles its books
every four or five months and had not yet done so when this incident occurred.
10. Mr. XXXXX submitted a copy of his ledger
showing the XXXXX dates of entry of these two checks.
11. Mr. XXXXX then stopped payment on the two
missing checks and issued two new ones which the Commission received in June
XXXXX along with duplicate copies of the missing returns.
12. Mr. XXXXX has no idea why the Commission did
not receive these returns and checks on time.
He theorizes that the XXXXX City Post Office may have contributed to the
delay as Petitioner has had problems sending and receiving mail in the past.
13. The postal problems have caused Petitioner
so much trouble that now they send all returns and payments to the Commission
by certified mail.
14. It is curious to note that the Commission
received Petitioner's returns and payments in an envelope postmarked June XXXXX
out of XXXXX City.
15. Petitioner has an unblemished record in
filing and paying its taxes on time.
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 waiver of the penalties associated with the sales and use
tax and resort tax due on the first quarter of XXXXX. The interest is not waived.
It is so ordered.
DATED
this 22nd day of June, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner