86-0430 - Withholding

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0430

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

:

Respondent. )

_____________________________________

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 fourth 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.

The tax due for the fourth quarter of XXXXX was $$$$$. Petitioner stated that check No. XXXXX, dated XXXXX, was timely filed with the Tax Commission. Petitioner received a notice for payment of taxes dated XXXXX. Respondent has no record of the check being received and assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. Petitioner requests a waiver of the penalty and interest.

FINDINGS

Petitioner received monthly statements from the bank from which Petitioner could easily verify whether or not check No. XXXXX had cleared. The Petitioner waited approximately twenty two months and received approximately twenty two bank statements but never contacted the Tax Commission to find out why the check did not clear. Petitioner waited for the Tax Commission to send out a notice. Petitioner has the duty not only to timely file the taxes, but to insure that the check clears, and if it does not clear, the burden is on the Petitioner to contact the Tax Commission to resolve the problem.

Penalty and interest were properly assessed on the account.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on withholding tax account No. XXXXX for the fourth quarter of XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 9 day of January, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner