86-1819 - Withholding Tax

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 86 1819

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 the first quarter of XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Petitioner stated that the previous employee in charge of payroll quit after only a short notice in order to have surgery. She had only three to four days in which to train her replacement. The new employee in charge of payroll had previous payroll experience but was not aware that she would not receive notice from the state to file withholding returns. During the transition of payroll personnel, the coupon book was misplaced.

Respondent assessed a penalty of $$$$$ and interest of $$$$$ on a tax due of $$$$$ for the first quarter of XXXXX. Petitioner has paid the tax and interest but requests a waiver of the penalty.

FINDINGS

Petitioner had sufficient funds in his checking account with which to timely pay the withholding tax.

Petitioner has always timely paid the withholding tax except for the one quarter in question.

Respondent properly assessed penalty and interest on this account because the tax was, in fact, paid on XXXXX. This was thirteen days late. However, in consideration of the fact that this is the first time that Petitioner has been late, and because Petitioner discovered the error itself and immediately sent in the withholding, the Tax Commission, in its discretion, reduces the penalty to $$$$$.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the penalty on withholding tax account No. $$$$$ for the first quarter of XXXXX be reduced to $$$$$.

The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 5 day of March, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner