86-0073 - Withholding

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. )

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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