92-1250 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

XXXXX, : CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1250

: Account No. XXXXX

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STATEMENT OF CASE

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

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 December XXXXX.

3. Petitioner sent in its withholding return and payment for the month in question on XXXXX, two weeks early.

4. When Petitioner noticed that the check had not cleared its bank account at the end of January, it notified the Tax Commission.

5. The Tax Commission told Petitioner it had received only the withholding coupon, but not a check.

6. Petitioner immediately requested a stop payment on the issuing check and re-issued a second check. This second check was hand-delivered to the Tax Commission on XXXXX.

7. On XXXXX, the Tax Commission apparently located the missing check and called wanting an explanation for why the bank refused to honor this check.

8. Petitioner explained the history of events.

9. Petitioner was later assessed a penalty for late payment. This penalty was subsequently waived. Interest remains at issue.

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 waiver of the interest associated with the withholding tax due for the period in question. It is so ordered.

DATED this 2nd day of October, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner