Tax Type
Declaration of Estimated Income Tax by Individuals
Individual Income Tax
Description
Abate the interest and estimated tax underpayment penalty assessed
Topic
Payment and Refund
Date Issued
12-14-1984
December 14, 1984
Re: § 58-1118 Application: Individual
Dear ********
This will reply to your letter of August 22, 1984 in which you seek relief of penalty and interest assessed against your client, and ***** ("Taxpayer"), for calendar year 1983.
FACTS
Your firm's letter dated September 15, 1983 recites that it was transmitting a voucher and check in the amount of $**** to pay the third installment of estimated tax for calendar year 1983 on behalf of Taxpayer. You have presented a copy of such letter which bears a stamp acknowledging receipt by the Processing Services Division of the department on September 20, 1983, as well as a copy of U.S. Postal Service return receipt. The check for $**** was never deposited by the department.
Taxpayer filed the 1983 return assuming $**** was in the estimated account. Department records showed $**** to be in the account and accordingly, tax in the amount of $**** was assessed, along with interest and estimated tax underpayment penalty. Taxpayer paid the $**** of tax and seeks abatement of the interest and estimated tax underpayment penalty.
DETERMINATION
The evidence suggests that Taxpayer presented payment of the third installment of estimated tax for calendar year 1983 and the Department never deposited it. Taxpayer paid the $**** tax deficiency upon notification.
Based on the facts presented, I find basis for accepting your application for correction and hereby abate the interest and estimated tax underpayment penalty assessed by bill no.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner