94-1596

Withholding
Signed 3/9/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1596

:

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 was XXXXX. Present and representing Respondent was XXXXX.

Petitioner is appealing the approximately $$$$$ of interest associated with withholding tax for the XXXXX tax period. Upon Petitioner's request for a waiver, the Collection Division Waiver Unit did waive the penalty of $$$$$ relating to the same period. The underlying amount of withholding tax for that period was $$$$$.

At the conference Petitioner stated that the withholding tax had been timely mailed on XXXXX On XXXXX Petitioner received a letter from the Tax Commission stating that the payment and filing had not been received. Petitioner on XXXXX sent in a copy of the tax form and original check along with a new check for the amount owed. However, on XXXXX Petitioner was again notified that the Tax Commission had not received the form or the payment. Petitioner sent in a third check and copy of the tax form. In XXXXX a Tax Commission employee notified Petitioner that she had located Petitioner's XXXXX mailing, which still had the second check attached.

At the conference Respondent stated that Petitioner did retain the benefit of the withholding tax funds until the time they were withdrawn from Petitioner's account. Therefore, Respondent could not recommend waiving all the interest. However, because of the mishandling of the second check by Tax Commission employees, Respondent recommended waiving the interest accruing after XXXXX. DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to reduce the interest assessed for the XXXXX withholding tax period by the amount which accrued after XXXXX.

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 9 day of March, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

^^