BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) INFORMAL DECISION
XXXXX ) Appeal No. 91-0458
: 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
Petitioner
timely filed its XXXXX Corporation Franchise Tax Return, but the check was not
received by the Tax Commission for payment of the amount of tax of $$$$$. A late payment penalty was imposed in the
amount of $$$$$, together with interest in the amount of $$$$$.
As
soon as the Petitioner was notified that the check was not enclosed, they
stopped payment on the check which they allege had been enclosed and mailed
another check for the amount of tax, which was received on XXXXX. The Petitioner believes the check was
enclosed with the return, and that it was the Tax Commission that lost the
check which had been mailed. Of course,
there is no proof of who lost the check, nor is there any proof that the
original check was ever sent. However,
the Commission waived the penalty on the initial request. Petitioner now requests that the Commission
waive the interest because of the alleged fault of the Tax Commission. Petitioner therefore urges that they should
not be required to pay interest.
DECISION AND ORDER
Interest
is not dependent upon who is or is not at fault, but is imposed on the loss of
the use of the money. Since the
Petitioner had the money in its checking account during the time it was not
received by the Tax Commission, and further because there is no proof that it
was the Tax Commission's fault, the Commission declines to waive the interest.
The
Tax Commission finds sufficient cause does not exist to waive the interest
associated with the Corporation Franchise Tax Return for the fiscal year ended
XXXXX. It is so ordered.
DATED
this 8 day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner