94-1469

Sales Tax

Signed 3/5/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1469

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Sales Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. 59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner for the late payment of the XXXXX XXXXX sales tax. Petitioner had requested a waiver of these penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner is now appealing this denial. The underlying amount of the sales tax for the period in question was $$$$$.

At the conference Petitioner's representative stated that Petitioner had filed and sent in the check timely for payment of the XXXXX taxes. Petitioner's representative stated that Petitioner did receive notice from its bank saying the check had been returned to the Tax Commission unpaid because of the insufficient funds in Petitioner's account. Petitioner did nothing at this time because it thought that the Tax Commission would redeposit the check.

In XXXXX, Petitioner's representative stated that they received a notice from the Tax Commission requesting payment of the XXXXX sales tax. Petitioner's representative then contacted the Tax Commission by phone and was told that the check had been returned unpaid for insufficient funds. Petitioner's representative asked for the check but the person she spoke with did not have it. Petitioner was confused as to what it should do because the Tax Commission did not produce the unpaid check so Petitioner did not send in a new check until XXXXX.

Respondent stated that the Tax Commission has an established policy that it does not resubmit returned checks. Further, the Respondent stated the XXXXX late payment penalty is statutory and was validly assessed in this matter. Respondent did not feel that Petitioner had established reasonable cause sufficient to waive either the penalty or the interest.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive or reduce the penalties of $$$$$ and interest of approximately $$$$$ assessed for the Petitioner's sales tax filing for the 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 15th day of March, 1995.

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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