86-0151 - Withholding

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0151

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

An Informal Hearing was held on XXXXX in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

XXXXX (Petitioner) appealed the assessment of a penalty and interest on Account No. XXXXX for the first quarter of XXXXX by Collection Division of the Utah State Tax Commission (Respondent). Respondent computed a penalty of $$$$$ and interest of $$$$$, for a balance due of $$$$$. This was based upon receipt of a check on XXXXX, for the tax due for the first quarter of XXXXX. Petitioner asserted that the original check for the tax due for the first quarter of XXXXX was timely filed on or about XXXXX, and that it was subsequently lost in the mail. Respondent then granted a partial waiver of the penalty and interest. On XXXXX, the redetermined balance due consisted of $$$$$ in penalty and $$$$$ in interest for a total due of $$$$$. Thereafter, Petitioner requested a hearing before the Commission.

FINDINGS

1. The check stub for check XXXXX indicates that a check was written to the Utah State Tax Commission on XXXXX, for the amount of tax due for the first quarter of XXXXX. Petitioner presented evidence that the preceding check XXXXX was written on XXXXX, and that the following check XXXXX was written on XXXXX.

2. The assessment of $$$$$ in interest is proper. The Petitioner had the economic benefits of the money designated for taxes on the first quarter of XXXXX between the time Petitioner prepared the first check and the time Petitioner prepared the second check for payment.

3. The burden is on Petitioner and not on Respondent to insure that the taxes are timely paid. If the taxes are not timely paid then a penalty is properly assessed. See Utah Code Ann. § 59-15-8 (1953).

4. The Commission finds that the Respondent's reduction of the penalty from $$$$$ to $$$$$ is reasonable based on the fact that Petitioner has an excellent filing history and that check $$$$$ was timely prepared even though it was not timely filed.

DECISION AND ORDER

Based on the foregoing facts and evidence presented at the Hearing, it is the decision of the Commission that the penalty and interest in the amount of $$$$$ assessed against the Petitioner be sustained. The request for waiver of penalty and interest is denied.

DATED this 11 day of July, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

Mark K. Buchi R. H. Hansen

Chairman Commissioner

Roger O. Tew Joe B. Pacheco

Commissioner Commissioner