91-0054

Withholding Tax

Signed 3/15/91

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: ) INFORMAL DECISION

XXXXX ) Appeal No. 91‑0054

) Account No. XXXXX

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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

This case is regarding Petitioner's withholding tax payments for the first and second quarters of XXXXX. As to the second quarter of XXXXX, Petitioner acknowledges that the payment was made late by Petitioner and that the penalty and interest assessed on that quarter are appropriate. Regarding the first quarter of XXXXX Petitioner states that the withholding tax payment and return were mailed on XXXXX, in a timely manner. In XXXXX Petitioner became aware that the Tax Commission had not received its payment mailed in XXXXX. Petitioner then determined that the original check XXXXX had not cleared Petitioner's bank account. Therefore, Petitioner issued a new check XXXXX, dated, XXXXX.

It appears that the non‑receipt by the Tax Commission of Petitioner's original timely mailed check and return was due to no fault of Petitioner and the penalty for the first quarter of XXXXX should be waived. Interest, however, should not be waived since 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 Petitioner's withholding tax for the first quarter of XXXXX. The penalty for the second quarter of XXXXX is not waived. Interest shall be adjusted to account for the waiver of the first quarter of XXXXX penalty. It is so ordered.

DATED this 15 day of March, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861‑5A‑l(p) and Utah Code Ann. '63‑46b‑14(3)(a).

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