86-0341 - Withholding

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0341

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 Withholding Tax Account No. XXXXX for the second quarter of XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Petitioner stated that he timely filed the withholding taxes for the second quarter of XXXXX. Petitioner introduced a copy of check No. XXXXX, which check was made out in the amount of $$$$$, the amount of the tax liability for the second quarter of XXXXX. This check was dated XXXXX. Petitioner presented his check register, showing that check No. XXXXX was written in sequence.

When the check did not clear, Petitioner called the Tax Commission to see if the check had been received but not processed. Petitioner was told that the check had never been received. Petitioner put a stop order on check No. XXXXX and immediately issued a new check for the identical amount.

Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.

In consideration of the fact that Petitioner has an excellent filing history, and that Petitioner took the initiative to resolve this matter rather than wait for the Tax Commission to initiate collection proceedings, the Commission hereby waives the penalty. However, the Commission affirms the assessment of interest since Petitioner had the use of the money from the time that the Tax Commission would have normally received the check until the second check was received by the Commission.

DECISION AND ORDER

It is the decision and order of the Utah State Tax Commission that the penalty on Withholding Tax Account No. XXXXX for the second quarter of XXXXX be waived.

The assessment of interest on this account is hereby affirmed.

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

DATED this 15 day of October, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner