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

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