86-0047 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0047

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

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STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a Decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on account No. XXXXX for the tax year XXXXX. An Informal Hearing was held on August 15, XXXXX in the offices of the Utah State Tax Commission. XXXXX, Hearing Officer, heard the matter for the Tax Commission.

Petitioner stated that he timely and properly filed his XXXXX State Income Tax Return along with check No. XXXXX, which was payment in full. The Tax Commission received the return but gave no credit for the amount due. Petitioner became concerned when the check which was sent with the return did not clear the bank and contacted the Respondent to resolve the situation. Respondent suggested that the Petitioner send a stop order for on the original check and issue another check. Subsequently, Petitioner was notified that penalty and interest was due on account No. XXXXX because of late filing.

Because Petitioner acted on his own initiative, without any prior notice from the Respondent, because Petitioner did so as soon as he noticed that the check did not clear, and because Respondent suggested that Petitioner reissue a check along with a stop payment, the Tax Commission, in its discretion, waives the penalty on Petitioner's account.

Interest has properly been assessed on account No. XXXXX. Petitioner had use of the amount due for the tax year XXXXX, from April 15, XXXXX, until the date that check No. XXXXX dated August 13, XXXXX, cleared Petitioner's bank.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the penalty on account No. XXXXX be waived for the tax year XXXXX. The decision of the Collection Division of the Utah State Tax Commission to assess interest on this account is hereby sustained.

The Collection Division of the Utah State Tax Commission hereby ordered to adjust its records in accordance with this decision.

DATED this 7 day of October of 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner