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 Petitioner:         PETITIONER

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