93-1615
Penalty & Interest
Signed 7/26/94
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
Petitioner, :
: ORDER
v. :
:
COLLECTION
DIVISION OF THE : Appeal No. 93-1615
UTAH STATE TAX COMMISSION, :
Respondent. : Account No. XXXXX
: Tax
Type: Penalty & Interest
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a settlement conference on
XXXXX. G. Blaine Davis, Administrative
Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX. Present and representing the
Respondent 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 tax.
2. The periods in question are XXXXX, and
XXXXX, XXXXX, and XXXXX.
3. The Petitioner was required to switch its
method of payment to electronic funds transfer, but at the time the transfer
was required, the Petitioner was in the process of trying to make a major
acquisition of another company, and all of its accounting staff were out of
town performing due diligence on the potential acquisition. The accounting staff was gone for a period
of nearly twelve weeks.
4. The Petitioner filed its tax returns and
made payments timely by check, but they did not make payments by electronic
transfer.
5. The Petitioner had difficulty in obtaining
permission from its headquarters to make payment by way of electronic funds
transfer, because everything had to be submitted through numerous people in
different cities and prompt approval could not be obtained to make the payment
by electronic funds transfer. Never- theless, none of the payments were late in
being made.
APPLICABLE 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 penalty associated with the failure
to make payment by way of electronic funds transfer, but instead paying by
check, for the periods XXXXX and XXXXX, XXXXX, and XXXXX.
This
decision does not limit a party's right to a formal hearing. However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case
files a written request within thirty (30) days of the date of this decision to
proceed to a Formal Hearing. Such a
request shall be mailed to the address listed below and must include the
Petitioner's name, address, and appeal number:
Utah State Tax Commission
Appeals Division
210 North 1950 West
Salt Lake City, Utah 84134
Failure
to request a Formal Hearing will preclude any further administrative action or
appeal rights in this matter.
DATED
this 26th day of July, 1994.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^