94-1592

Withholding

Signed 2/27/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1592

:

COLLECTION DIVISION OF THE : Account No.XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Withholding

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call was XXXXX. Present and representing Respondent was XXXXX.

Petitioner is appealing the assessment against Petitioner of $$$$$ in penalties and $$$$$ in interest for the XXXXX tax period.

At the hearing Petitioner stated that the check for the XXXXX withholding liabilities had been paid timely. When notified by the Tax Commission that the check had been returned unpaid Petitioner paid the liability plus the interest with a new check and requested a copy of the original check to research why it had not been paid. Petitioner thought there were funds to cover the check in the account and that the check should have been paid by the bank. Petitioner did not receive a copy of the check from the Tax Commission.

At the conference Respondent produced a copy of the original check which had been returned. The reason for its return, as stamped on the check, was "XXXXX". Based on this, Respondent assumed the check's return must have been caused by a banking or processing error and recommended waiving the penalty.

The State of Utah was denied the use of the money from the date of the filing until it received the second payment.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause been shown to waive the penalties assessed for the XXXXX withholding tax period. Sufficient cause has not been shown to waive the interest assessed.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 27 day of February, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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