BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
Petitioner, ) AMENDED
: INFORMAL
DECISION
v. )
:
COLLECTION
DIVISION OF THE )
UTAH STATE TAX
COMMISSION : Appeal No. 86-0036
) Account
No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held on August 13, XXXXX.
XXXXX, Hearing Officer, heard the matter for the Utah State Tax
Commission. XXXXX and XXXXX represented
the Petitioner.
Petitioner
testified that a check for the amount of the first quarter, XXXXX, withholding
tax was prepared, then voided by the accountant, because he thought it was a
duplicate of the sales tax check.
Petitioner did not discover the error until filing the second quarter,
XXXXX, withholding taxes, at which time it was brought to the attention of the
Tax Commission. Petitioner testified
that $$$$$ was in his account at the time payment was due.
FINDINGS
1. Utah Code Ann. § 59-14A-89(b) provides that if any part of any deficiency in tax
imposed by the Individual Income Tax Act is due to negligence or intentional
disregard of the rules and regulations, but without the intent to defraud,
"the greater of $$$$$ or five per cent of the total amount of the
deficiency (in addition to such deficiency) shall be assessed, collected and paid
in the same manner as if it were a deficiency .
2. The Commission has power to waive, reduce,
or compromise any of the civil penalties provided in the Individual Income Tax
Act. Utah Code Ann. § 59-14A-92(6) (1953).
3. The Commission finds that Petitioner was not
negligent in that he prepared and intended to pay his first quarter, XXXXX,
withholding tax liability in a timely manner.
However, his office staff, through misunderstanding and negligence,
voided the prepared check without informing the Petitioner. The Commission finds, based on the facts and
the Petitioner's good filing history, that the penalty should be reduced to
$$$$$, and any interest which has accrued in association with the penalty
should accordingly reduced.
DECISION AND ORDER
Based
on the foregoing facts and the evidence provided, it is the Decision and Order
of the Utah State Tax Commission that the penalty be reduced to $$$$$, and that
any interest which has accrued in association with the penalty be accordingly
reduced. The Respondent is therefore
ordered to adjust the records of the Collection Division to reflect the
decision of the Commission.
DATED
this 4 day of September, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco
Commissioner