BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX
Petitioner, )
v. ) INFORMAL DECISION
COLLECTION
DIVISION OF THE ) Appeal No. 87-0172
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. )
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held on XXXXX.
XXXXX represented Petitioner.
David J. Angerhofer, Hearing Officer, heard the matter for the Utah
State Tax Commission. Respondent
assessed a penalty and interest for the late payment of Petitioner's second
quarter, XXXXX, withholding taxes.
Petitioner testified that at the time the withholding taxes were due,
one of its two major clients had filed a Chapter 11 case in Bankruptcy. This client owed Petitioner a substantial
amount of money and Petitioner found that it could not pay the withholding
taxes until the client was able to pay it the money owed. Petitioner nevertheless filed its XXXXX
return on time and attached a letter explaining that it would pay the taxes as
soon as it received payment from the client.
Petitioner paid the amount of the tax, $$$$$ on XXXXX, less than one
month late. Subsequently, Petitioner
received a notice of deficiency for the amount of the penalty and interest
assessed until that time. Petitioner
paid the interest and subsequently paid the penalty in order to avoid judgment
and is now requesting a refund of the penalty, but not of the interest.
DECISION AND ORDER
The
Commission finds that Petitioner did not show reasonable cause for the late
payment of its XXXXX, withholding tax.
Therefore, it is the Decision and Order of the Utah State Tax Commission
to sustain the penalty assessed against Petitioner's late payment of the XXXXX
withholding tax liability.
DATED
this 5 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner