00-0981
WITHHOLDING TAX
SIGNED 1/17/01
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, )
) ORDER
Petitioner, )
) Appeal No. 00-0981
v. )
) Account No. #####
AUDITING DIVISION OF THE )
UTAH STATE TAX
COMMISSION, ) Tax Type:
Withholding Tax
)
Respondent. ) Judge: Davis
_____________________________________
Presiding:
G. Blaine Davis,
Administrative Law Judge
Appearances:
For Respondent: Ms. Becky McKenzie, from the Auditing
Division
STATEMENT OF
THE CASE
This matter came before the Commission on
December 12, 2000 for a Status Conference and was therein converted to an
Initial Hearing, to be conducted pursuant to the provisions of Utah Code Ann. '59-1-502.5.
In an audit of Petitioner's payroll withholding
returns, it was determined that the amount of payroll withholding tax which had
been reported and paid to the State of Utah did not match the amount of the
State payroll withholding tax shown on the W-2 forms for the employees, and was
underpaid by approximately $$$$$.
Petitioner alleges it was a "clerical error", but did not have
any further explanation of how such an error occurred.
On March 21, 2000, Respondent requested
information regarding why the annual reconciliation did not match the amount
shown on the W-2 forms. No response was
received thereon. Therefore, a
Statutory Notice was sent on May 17, 2000 imposing the amount of the tax,
penalty and interest.
On a prior audit of Petitioner, they had an
identical problem in 1995, i.e., the amount reported and paid was less than the
amount shown on the W-2 forms.
APPLICABLE
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(10).
DECISION
AND ORDER
Based upon the foregoing, the Commission finds
that sufficient cause has not been shown to justify a waiver of the penalty or
interest associated with the 1997 withholding tax returns of Petitioner. It is so ordered.
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 appeal rights in this matter.
DATED this 17th day of January , 2001.
____________________________________
G. Blaine Davis
Administrative Law Judge
BY ORDER OF THE UTAH
STATE TAX COMMISSION:
The
Commission has reviewed this case and the undersigned concur in this
decision.
DATED this 17th day of January , 2001.
Pam Hendrickson R.
Bruce Johnson
Commission Chair Commissioner
Palmer DePaulis Marc
B. Johnson
Commissioner Commissioner