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
Joe B. Pacheco Alice Shearer