BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, ) AMENDED
: INFORMAL DECISION
COLLECTION DIVISION OF THE )
UTAH STATE TAX COMMISSION : Appeal No. 86-0036
) Account No. XXXXX
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 $$$$$ was in his account at the time payment was due.
1. Utah Code Ann. § 59-14A-89(b) provides that if any part of any deficiency in tax imposed by the Individual Income Tax Act is due to negligence or intentional disregard of the rules and regulations, but without the intent to defraud, "the greater of $$$$$ or five per cent of the total amount of the deficiency (in addition to such deficiency) shall be assessed, collected and paid in the same manner as if it were a deficiency .
2. The Commission has power to waive, reduce, or compromise any of the civil penalties provided in the Individual Income Tax Act. Utah Code Ann. § 59-14A-92(6) (1953).
3. The Commission finds that Petitioner was not negligent in that he prepared and intended to pay his first quarter, XXXXX, withholding tax liability in a timely manner. However, his office staff, through misunderstanding and negligence, voided the prepared check without informing the Petitioner. The Commission finds, based on the facts and the Petitioner's good filing history, that the penalty should be reduced to $$$$$, and any interest which has accrued in association with the penalty should accordingly reduced.
DECISION AND ORDER
Based on the foregoing facts and the evidence provided, it is the Decision and Order of the Utah State Tax Commission that the penalty be reduced to $$$$$, 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
Joe B. Pacheco