94-1617

Sales

Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1617

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Sales

_____________________________________

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 in the amount of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to sales tax for the second quarter of XXXXX. The underlying amount of the sales tax owed for that quarter was $$$$$. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the hearing the representative for Petitioner stated that he personally wrote the check for payment of the second quarter taxes and mailed it timely with the coupon. Petitioner assumed the Tax Commission had received the payment. In XXXXX Petitioner was notified that the check for the second quarter of XXXXX had not been received.

At the hearing Respondent stated that the account history indicated that the check had been received at the Tax Commission but it had been returned by Petitioner's bank unpaid.

Petitioner was unaware of this information and stated that he was never notified by his bank about the check being returned. Further, Petitioner stated that the check should not have been returned by its bank unpaid.

Both Petitioner and Respondent thought there may have been an error on the part of Petitioner's bank. Respondent stated that if Petitioner provided a letter from its bank admitting that the bank had made an error then Respondent would recommend that there was sufficient reasonable cause to waive the penalties.

The Settlement Conference was continued to give Petitioner the opportunity to provide this information. Petitioner did provide a letter from its bank which indicated there had been an error on the part of the bank.

In considering Petitioner's request for waiver of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties or $$$$$ assessed relating to sales tax for second quarter of XXXXX. Sufficient cause has not been shown to waive the interest.

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 28 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

^^