01-1641

Withholding Tax

Signed 6/4/02

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-1641

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Withholding Tax

THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 1998

)

Respondent. ) Judge: Davis

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP, by telephone

For Respondent: Ms. Laurie Payne, from the Taxpayer Services Division

 

 

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5 on May 13, 2002.

A penalty and interest were imposed upon the July 1998 withholding return of Petitioner. The penalty has been waived, and Petitioner is requesting that the interest be waived.

When Petitioner filed its return, it showed an amount of $$$$$, which was $$$$$ short of the correct amount. The check from Petitioner was made payable in the correct amount of $$$$$. When the return and check were received by the Tax Commission, it was encoded by the key-punch operator for an amount of $$$$$, the amount shown on the return filed by Petitioner, but $$$$$ less than the amount for which the check was written.

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).

DISCUSSION

Interest is normally waived only if it is incurred because of a Tax Commission employee error. In this matter, even though the problem appears to have been started by Petitioner placing the wrong amount on the monthly withholding return, it was compounded at the Tax Commission by the person receiving the matter not noticing that the check was made payable for a larger amount than the return. Accordingly, the Commission determines that there was some Tax Commission employee error. Accordingly, the Commission has determined to waive the interest.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has been shown to justify a waiver of the interest associated with the July 1998 withholding return. 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 4th day of June , 2002.

 

____________________________________

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 4th day of June , 2002.

 

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner