86-0418 - Withholding

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0418

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This is 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 all four quarters of XXXXX. Petitioner waived its right to an oral hearing. Therefore, the Commission decides this matter based on the materials in the file.

The tax for all four quarters of XXXXX was paid on XXXXX. Respondent assessed a total penalty of $$$$$ and interest of $$$$$ as of XXXXX.

Petitioner stated that it hired a bookkeeper in XXXXX, and that she was initially very efficient. Petitioner discovered later that she defrauded the company of $$$$$ and that the IRS will probably charge her with six counts of felony tax fraud. The bookkeeper prepared erroneous tax returns.

FINDINGS

Due to the special circumstances of this case, the Commission waives the penalty for the four quarters of XXXXX.

Interest was properly assessed since the Tax Commission was denied the use of the money during this period.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty on withholding tax account No. XXXXX for the four quarters of XXXXX be waived.

The assessment of interest by the Collection Division of the Utah State Tax Commission is affirmed.

The Collection Division is hereby ordered to adjust its records in accordance with this decision.

DATED this 9 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