86-0403 - Withholding

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0403

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

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STATEMENT OF CASE

This matter came before the Tax Commission on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX was present.

Petitioner presented evidence that the withholding tax checks are made out each month and kept in an envelope. At the end of the quarter the checks and the returns are then sent to the Tax Commission. It was discovered after two quarters returns had been filed, that they had been filed without payment. This was first brought to the attention of the Petitioner by a notice from the Tax Commission after the second quarter was due.

Petitioner argued that had the Tax Commission notified the Petitioner promptly and timely the second quarter would not have been paid late. Petitioner uses this argument to request that the penalty for the second quarter be waived.

In addition, it appears that the Petitioner has paid penalty and outstanding interest twice. A check for $$$$$ was paid on XXXXX. A check for $$$$$ was paid on XXXXX, and an additional check of $$$$$ was paid in XXXXX. The total penalty was $$$$$.

The penalty was calculated as follows for the first quarter of XXXXX. The due date for the payment was XXXXX, it was eventually paid on XXXXX, eight months later. The statute calls for a 5% per month, not to exceed 25% penalty for late payment. Twenty-five percent of the tax due of $$$$$ equals $$$$$. The second quarter of XXXXX was 1 1/2 months late which would give a 10% penalty of the $$$$$, which would equal $$$$$. Adding those two together equals $$$$$.

DECISION AND ORDER

It is the Decision and Order that the penalty of $$$$$ be affirmed. It is further ordered that all overpayments be refunded to the Petitioner.

DATED this 9 day of January, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF AH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner