BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: )
XXXXX : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
92-2315
: 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. Representing the Petitioner was XXXXX,
Petitioner's office manager.
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. According to Tax Commission records,
Petitioner filed and paid its second quarter XXXXX sales and use taxes on
XXXXX, over two and 1/2 months late. As
a result, the Tax Commission assessed Petitioner a single ten percent late
penalty and interest.
4. Later, the Commission reduced the ten
percent penalty to $$$$$.
5. Petitioner is requesting a waiver of this
$$$$$ penalty amount and the interest.
6. XXXXX, Petitioner's office manager,
testified that she mailed the return in question along with payment check
#XXXXX in the amount of $$$$$ to the Tax Commission on XXXXX at the local post
office.
7. From Petitioner's bank account records, she
knew that this check had not yet cleared over the next month or two, but felt
that it was just a matter of time.
8. Then, in XXXXX, XXXXX received notice from
the Tax Commission that no return or payment had been received for the quarter
in question.
9. Petitioner stopped payment on the check and
submitted a second which cleared shortly.
In the meantime, the Tax Commission had assessed Petitioner the late
penalty and interest.
10. XXXXX maintains that Petitioner is not
responsible for a check that the Tax Commission allegedly lost, nor is interest
appropriate for a Commission error.
11. It is noted for the record that Petitioner's
check #XXXXX submitted for the second quarter XXXXX withholding was timely
received at the Commission.
12. Petitioner's bank account records also show
that lost check #XXXXX was in sequential order with other checks Petitioner
issued in XXXXX. Further, Petitioner had sufficient funds to cover the lost
check had it cleared during the latter months of XXXXX.
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 taxes due on the second quarter XXXXX.
The interest is not waived as Petitioner had the use of the money
between XXXXX. The interest is ordered
to be computed from XXXXX only. It is
so ordered.
DATED
this 10th day of September,1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner