97-0724
Sales Tax
____________________________________
PETITIONER, :
:
Petitioner, : ORDER
:
v. : Appeal No. 97-0724
:
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 pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
adjudicative proceedings. An Informal
Hearing was held in this matter on June 19, 1997. Jane Phan, Administrative Law Judge, heard the matter for and on
behalf of the Commission. Present and
representing Petitioner were PETITIONER
REP. Present and representing
Respondent was XXXXX.
Petitioner
is appealing the assessment of penalties totaling $$$$$ and interest of
approximately $$$$$, relating to the late electronic funds transfer (EFT) of
tax payment for the September 1996 filing period.
Petitioner's
representatives explained that the EFT had been called in by Petitioner on
October 30, 1996, one day prior to the due date. According to Petitioner's representatives the EFT should have
been timely but COMPANY A must have erred when entering the EFT transfer. They provided a copy of the computer log
from COMPANY A which indicated that the call had been made on October 30, 1996. They also provided a copy of their bank
statement which indicated that sufficient funds were available to cover the tax
payment. Petitioner's also asked that
the penalty be waived because Petitioner was voluntarily collecting sales tax
on product that was sold to its distributors who were independent contractors,
to assist the State of Utah in collecting the tax. Petitioner also asked that the penalties be waived due to
financial hardship. However, financial
hardship is not grounds for waiving penalties or interest.
Respondent's
representative explained that this was not a first time error, as penalties had
been waived for three periods in 1995 due to bank error. She explained it was her understanding from
the Tax Commission records that the phone call to initiate the EFT was not made
until the day after the taxes were due, 24 hours late. She provided no documents to support this
assertion.
APPLICABLE LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(10).)
DECISION AND ORDER
The
weight of the evidence produced by the parties supports Petitioner's assertion
that they had called in the EFT timely and the error was on the part of the
transfer company. Based upon this
information presented at the hearing, and the records of the Tax Commission,
the Commission finds sufficient cause been shown to waive the $$$$$ in
penalties relating to sales tax for the September 1996 period. Sufficient cause was not shown for waiver or
reduction of the interest. It is so
ordered.
DATED
this 30 day of JUNE, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
_____________________________
Jane Phan
Administrative Law Judge
The
agency has reviewed this case and the undersigned concur in this decision.
DATED this 30 day of
JUNE, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^