BEFORE THE STATE TAX COMMISSION OF UTAH
XXXXX ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-0277
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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.
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
Joe B. Pacheco