89-0702 - Withholding




XXXXX,                                                                                 )

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION


                                                                                    :           Appeal No. 89-0702

COLLECTION DIVISION OF THE                          :

            UTAH STATE TAX COMMISSION,            :

                                                                                    :           Acct No. XXXXX

            Respondent.                                                     :



            This matter came before the Utah State Tax Commission pursuant to the Rules of Administrative Procedures Act for an informal hearing.  No hearing was requested, therefore, the matter was conducted by review of the file before the Tax Commission.

            The Petitioner's taxes were handled by XXXXX, a XXXXX Company.  On XXXXX, XXXXX timely filed the Petitioner's third quarter XXXXX withholding tax.  That payment was made by check XXXXX in the amount of $$$$$.  The check was mailed to the Tax Commission by certified mail.  The return receipt of that letter indicated it had been received by the Commission on XXXXX and signed for by XXXXX.

            Check XXXXX was not credited to the Petitioner's account and was somehow misplaced or lost.  The Petitioners were notified by the Commission that the withholding taxes for the period in question were still outstanding.

            XXXXX, on behalf of the Petitioner, stopped payment on check XXXXX and submitted check #32904 which was received and deposited by the Commission.

            To this date, check XXXXX has not been recovered.

            Petitioner was assessed a penalty in the amount of $$$$$ and statutory interest for failure to timely pay the tax due.


            Based on the foregoing, the Tax Commission finds sufficient cause to waive the penalty and interest associated with the withholding taxes for the third quarter XXXXX tax year.  It is so ordered.

            DATED this 23rd day of January, 1990.