BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 90-1586
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.
When Petitioner remitted the prepayment on her application for extension for the income tax year XXXXX, Petitioner drafted a check to make the prepayment. The dollar amount indicated in numerals on the check is $$$$$, whereas Petitioner has also written in the appropriate place on the check, $$$$$ dollars. Petitioner did not include the $$$$$ figure on the prepayment form and a $$$$$ figure was filled in by a Tax Commission employee, who also stamped "Amount Guaranteed $$$$$, Utah State Tax Commission" on the check. The payment was treated by the Tax Commission as a $$$$$ payment, which was insufficient for the required prepayment.
The Tax Commission has previously waived all penalties associated with this case, but did not waive the interest. Petitioner now requests that the interest also be waived.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for the late filing and payment of taxes.
Utah Code Ann.59-1-401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalties and interest assessed under the above statutes.
Such reasonable cause for waiver of the interest has been shown. The difficulty was in part the confusing nature of Petitioner's check, but it was also in part the Tax Commission employee who did not rely on the legal presumption that the words on a check supersede the numbers.
DECISION AND ORDER
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of interest is granted. It is so ordered.
DATED this 13th day of November, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis