96-2321
Sales Tax
Signed 3/11/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
COMPANY B, :
:
:
Petitioner, : ORDER
:
v. : Appeal No. 96-2321
:
COLLECTION
DIVISION OF THE : Account No. #####
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 February 25,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was
PETITIONERS REP.. Present and
representing Respondent was RESPONDENT REP. of the Collection Division.
This
case involves sales tax for the third quarter of 1995. Late filing and late payment penalty of
$$$$$ was imposed with approximately $$$$$ having accrued in interest. The due date was October 30, 1995. Petitioner explained that he had sold the
assets of the company and had assumed that all taxes were paid. During the period in issue he was receiving
mail as it was being forwarded from the original business address. However he claims he did not receive all of
the correspondence and did not have all of the records available to him to take
care of this matter in a timely fashion.
He did attempt to pay on March 20, 1996 with a check that was
accompanied by a restricted endorsement requesting that this be accepted as
payment in full, resolving all outstanding issues. The check was returned with a letter indicating that a check with
a restrictive endorsement attached could not be accepted. However, Petitioner submitted another check
with an identical restrictive endorsement on April 11, 1996. That check was erroneously processed and
when that was discovered, it was refunded to Petitioner. The refund was sent to the business address
of record. The secretary at that
location indicated she has been forwarding the mail to Petitioner but
Petitioner indicated he did not receive this piece of mail. Petitioner indicates that the penalty and
interest should be waived as an equitable matter since he assumed personal liability
for the taxes due and took care of the matter to the best of his ability.
Respondent
has asserted that the circumstances do not rise to the level of reasonable
cause to waive the penalty or the interest.
The interest accrues as a result of the fact that Petitioner and not the
Respondent had the benefit of the funds during the interim period. The penalty for late filing was imposed as a
result of the failure to meet the October 30, 1995 deadline. The penalties had been justified long before
the Tax Commission erroneously processed the second restrictive endorsement
check.
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
The
Commission has reviewed the entire matter and the positions of both the
Petitioner and the Respondent. The
Commission finds sufficient cause has not been shown to justify waiver of the
penalties or interest assessed for the period in issue.
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 March, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^