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.
FINDINGS
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
Chairman Commissioner