96-0685

Sales Tax

Signed 7/11/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : ORDER

:

v. : Appeal No. 96-0685

:

COLLECTIONS 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 an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. G. Blaine Davis, 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 of the Collections Division.

Petitioner alleges that the sales tax return for the third quarter of XXXXX was prepared and filed timely, together with a check for payment of the full amount. The return was received, but the Tax Commission does not have a record of the payment. Accordingly, a penalty was imposed for the late payment of the tax.

Respondent sent a letter to Petitioner indicating that the check had not been received, and Petitioner immediately upon receipt of that letter called the bank to see if the check had cleared, and upon learning that it had not cleared, she stopped payment on the check and mailed a new check to the State Tax Commission for the payment. There is no explanation as to why the check had not been received.

Petitioner has provided a copy of the check stubs for the time period at issue, which shows that a check was written on XXXXX for the amount of the tax due. The checks before and after the check to the Tax Commission were to the XXXXX and XXXXX of Utah, and Petitioner provided a copy of the bank statement to show that there were sufficient funds in the bank to pay the amount of the check, and the two checks before and after the Tax Commission check both timely cleared the bank.

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(10).)

DECISION AND ORDER

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty, sufficient cause has not been shown to waive the interest assessed for the third quarter, XXXXX sales tax return for Petitioner.

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 11 day of July, 1996.

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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