02-1711

Withholding Tax

Signed 1/21/03

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

) ORDER

Petitioner, )

) Appeal No. 02-1711

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Withholding Tax

OF THE UTAH STATE TAX ) Tax Year: 04/02 – 06/02

COMMISSION, )

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP

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 January 14, 2003.

When Petitioner prepared the April to June 2002 withholding tax returns, an error was made and the check for the Tax Commission was sent to Workforce Services, and the check for Workforce Services was sent to the Utah State Tax Commission. When the error was discovered, the matter was corrected as soon as possible, but a penalty and interest had been imposed upon Petitioner.

Upon providing the facts, the penalty has been waived, but Petitioner is now requesting a waiver of the interest. However, the Tax Commission was denied the use of the money during that time, and the interest was not caused by Tax Commission employee error.

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 interest associated with the April to June 2002 withholding tax return. The penalty has previously been waived. 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 21^st day of January , 2003.

_______________________

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 21^st day of January , 2003.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner