BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0073
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess penalty and
interest on withholding tax account No. XXXXX for the first quarter of
XXXXX. An Informal Hearing was held on
October 15, XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Hearing Officer, heard the matter for
the Commission. XXXXX represented the
Petitioner.
Petitioner
admitted that the return was filed late, but stated that the penalty was
excessive based upon eight years of timely payments and the relatively harmless
nature of the transgression. Petitioner
asserted that the purpose of imposing penalties was to control a taxpayer's
faulty behavior. Since Petitioner has
timely filed prior to, and subsequent to the period in question, a penalty
would serve no positive purpose.
Respondent
assessed a penalty of XXXXX and interest of XXXXX as of November 18, XXXXX, on
a tax due of XXXXX. Petitioner is
willing to pay the interest but requests a waiver of the penalty.
FINDINGS
The
delinquent tax was paid on September 22, XXXXX, but was due on or before April
30, XXXXX. Respondent properly assessed
a penalty in the aggregate amount of 25%, pursuant to Utah Code Ann. §
59-14A-89(a) (1953). The return was filed almost five months late.
Petitioner
had the burden of proof to establish that Respondent assessed the penalty in
error. Petitioner failed to meet this
burden of proof.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty on withholding tax account No. XXXXX for first
quarter of XXXXX be denied.
The
assessment of penalty and interest by the Collection Division of the Utah State
Tax Commission is hereby affirmed.
DATED
this 1 day of December, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner