BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
: Appeal No.
89-0859
COLLECTION
DIVISION OF THE :
UTAH STATE TAX COMMISSION, :
: Acct No.
XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission requesting waiver of an interest
assessment on Petitioner's XXXXX quarter, XXXXX withholding tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j)
(1986 Rep. 1988 Supp.) no hearing was held.
Petitioner's file served as the evidentiary basis for this decision.
The
penalty assessment in this case has been previously waived by the Commission
and Petitioner now contests the interest assessment of $$$$$. Petitioner feels
that if the penalty is waived then the interest should be waived. Petitioner also has a question as to whether
interest was calculated on the penalty that was previously waived.
FINDINGS
Utah
Code Ann. §§59-1-401,59-1-402,59-12-107(19), and59-12-111 (1987 Rep., 1989
Supp.) provide for the assessment of penalty and interest for the late filing
of tax returns and the late payment of taxes.
Utah Code Ann. §59-1-401(8) (1987 Rep., 1988 Supp.) also provides that
the Commission upon reasonable cause shown may waive or reduce penalty and
interest assessed under the above statutes.
The
penalty and interest are separate assessments under the above statutes. Interest is calculated on the amount of tax
due and is payment to the state for the loss of use of the money between the
time it is due and the time it is paid.
Under
the above statute the penalty may be waived while retaining the interest due on
the amount of tax that was paid late.
Reasonable cause was shown for the waiver of the penalty assessment but
not the waiver of the interest on the tax due since that tax was not timely
paid by Petitioner.
DECISION AND ORDER
Based
on the foregoing, it is the decision and order of the Utah State Tax Commission
that Petitioner's request for waiver of interest be denied.