90-1630 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-1630

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX and XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is withholding tax.

2. The period in question is XXXXX.

3. The Petitioner pays its withholding tax on a monthly basis. For the above mentioned period, the withholding return as well as a check in the amount of the withholding tax due was filed in a timely manner.

4. The check to cover the payment of the withholding tax was drawn on a XXXXX bank. When presented for payment, the check was returned due to insufficient funds.

5. The lack of funds in the XXXXX banking account was due to the fact that the Petitioner's bookkeeper inadvertently failed to transfer the necessary funds from an account the Petitioner has with a Utah bank, to that of the XXXXX bank.

6. Sufficient funds existed in the Utah bank to cover the check in question.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a reduction of the penalty associated with the XXXXX withholding tax to the amount of $$$$$, and the interest is to be adjusted to reflect that reduction. It is so ordered.

DATED this 15th day of January, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.