92-2116 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: )

: INFORMAL DECISION

XXXXX )

: Appeal No. 92-2116

:

: 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 timely filed its fourth quarter XXXXX withholding tax return. A check was also included for the withholding tax due. This check, however, was returned for insufficient funds on XXXXX.

Petitioner's bank sent a letter explaining that the bank had bounced the check in error in that Petitioner did have adequate funds in its account at the time of presentation for payment.

On XXXXX, Petitioner sent in payment to cover the bounced check. The Tax Commission subsequently waived the ten percent late penalty. Petitioner's account reflects a $$$$$ legal fee assessment as well as interest.

Petitioner writes that it understood that this entire matter was resolved per a phone conversation between Petitioner, Tax Commission employee XXXXX and the bank.

Petitioner is requesting a waiver of the remaining interest and legal fee assessments.

DECISION AND ORDER

The ten percent negligence penalty was waived in this matter as the bank was negligent and not Petitioner. The interest is still owing, however, because Petitioner had the use of the money after XXXXX when the payment was due. The legal fee is not waived as the Tax Commission has had to pursue this case in search of payment. This may be a fee that Petitioner may want to present to its bank.

The Tax Commission finds sufficient cause does not exist to waive the interest and legal fee associated with the withholding tax due on the fourth quarter XXXXX. It is so ordered.

DATED this 8th 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