92-1672 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1672

: 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. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented himself.

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 periods in question are the months July through December XXXXX.

3. Petitioner filed his withholding tax return on time. The $$$$$ remittance check, however, bounced.

4. Petitioner was then assessed a ten percent penalty for late payment plus interest.

5. Petitioner didn't realize that the check had been returned until he received a notice from the Tax Commission.

6. Petitioner admitted that he had not balanced his checkbook during the time in question.

7. The insufficient funds notice from the bank was misplaced with Petitioner's incoming junk mail.

8. In the normal course of doing business, Petitioner stated that he has several bank accounts. He transfers money into his checking account to cover checks.

9. Petitioner calls his bank to assure the transfer is made.

10. In the past, Petitioner testified, the bank would call him whenever there were insufficient funds in his checking account so he could authorize a transfer.

11. In this present case, Petitioner thought he had transferred sufficient funds to cover this withholding check.

12. Petitioner is upset that his bank did not notify him of the insufficiency before returning the check.

13. Petitioner's bank wrote a letter stating that Petitioner did not call to authorize a transfer; however, Petitioner had sufficient funds in another account.

14. Petitioner also added that he requests the Tax Commission to waive the penalty and interest in that he does a substantial amount of dental care for state welfare recipients and receives very little, if any, compensation therefrom.

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 not been shown which would justify a waiver of the penalty and interest assessments due for the period in question. It is so ordered.

DATED this 18th day of February, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner