BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-1113
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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 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 Tax Commission. XXXXX represented the Petitioner. Petitioner stated that for the XXXXX, the check was timely filed with the Tax Commission but the return was mailed to the XXXXX. The Tax Commission did not deposit the check but waited until the return was received before making the deposit on XXXXX. Petitioner stated that she was told by an employee of the Tax Commission that it is Tax Commission policy to cash the check immediately even if there is a problem with the return. Penalty was reduced to $$$$$, but Petitioner requests a waiver of the entire amount. Respondent's records confirm that the check was timely filed with the Tax Commission but that the report was sent to the XXXXX in error. The Tax Commission held the check until the report was received.
Respondent properly assessed a penalty in this matter pursuant to Utah Code Ann. §59-1-401(1) (1953). This is a 10% penalty but has been reduced to $$$$$. The Tax Commission finds no justification to reduce the penalty further. Interest was assessed in error. The Tax Commission timely received the check in the amount of taxes due for the XXXXX and was not denied the use of the money because of any action on Petitioner's part. Rather, it was a Tax Commission decision to hold the check instead of cashing it.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that the penalty on withholding tax account No. XXXXX for the XXXXX shall remain at $$$$$. Interest shall be reduced to $$$$$. The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.
DATED this 11 day of December, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew