BEFORE THE UTAH STATE TAX COMMISSION
In Re: :
XXXXX ) INFORMAL DECISION
: Appeal No. 90-2659
: 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.
Petitioner maintains that its fourth quarter XXXXX withholding tax payment was filed and paid in a timely manner but that the return and payment were lost in the mail. In support of this, Petitioner has submitted a copy of Petitioner's bank statement showing that Petitioner had ample funds in the bank at the time of the payment (XXXXX) to cover the amount of the withholding for the fourth quarter of XXXXX. Petitioner also submitted a copy of Petitioner's "Record of Payment or Employee Pay Statement" showing that XXXXX check XXXXX to the Tax Commission was made out for the tax amount.
Petitioner was unaware of any problems concerning the payment for this period until a Tax Commission Notice of Failure to File dated XXXXX was received by Petitioner. Petitioner then stopped payment on check XXXXX and issued a replacement check XXXXX in the tax amount and remitted the replacement check to the Tax Commission. The replacement check is dated XXXXX and was received by the Tax Commission on XXXXX.
Petitioner now requests that the $$$$$ penalty plus interest be waived under the circumstances of this case. The Tax Commission finds that because the return was lost in the mail and Petitioner has supplied sufficient evidence to indicate that Petitioner attempted to make the payment, but through no fault of the Petitioner it did not arrive at the Tax Commission, the penalty should be waived. Interest, however, should not be waived because the state was deprived of the use of the tax funds in question for a period of time through no fault of its own and should be compensated for that loss of use.
DECISION AND ORDER
The Tax Commission finds sufficient cause does exist to waive the penalty associated with the withholding tax for the fourth quarter of XXXXX. Interest is not waived but will be adjusted to account for the waiver of the penalty. It is so ordered.
DATED this 18 day of January, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew