BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX ) INFORMAL DECISION
v. :
COLLECTION
DIVISION OF THE : Appeal No. 87-0277
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 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. Respondent did not
appear. Petitioner is a corporation
which pays XXXXX and his wife equal salaries.
Individual control sheets are kept to record the wages of XXXXX and
XXXXX and another control sheet is kept to record total wages. Petitioner mistakenly used the withholding
amount from one of the individual control sheets rather than from the total
control sheet when the withholding report was prepared for the XXXXX. As a result, only half of the required
withholding was paid. The withholding
tax for the XXXXX amounted to $$$$$.
The return was timely filed on XXXXX, but only $$$$$ was included as
explained above. Respondent assessed a
penalty of XXXXX and interest of XXXXX.
Petitioner has paid the remaining taxes and the interest but requests a
waiver of the penalty.
FINDINGS
Respondent
correctly assessed a %%%%% per month penalty pursuant to Utah Code Ann.
59-14A-89(a) (1953). This penalty
accrued at a rate of %%%%% per month to the maximum of %%%%%. This penalty is applied "in case of
failure to file an income tax return and pay the tax required under this act on
or before the date prescribed therefor Petitioner had its 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 the penalty on withholding tax account No. XXXXX for the
XXXXX be denied. The assessment of penalty
and interest by Collection Division of the Utah State Tax Commission is hereby
affirmed.
DATED
this 5 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco