87-0505 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

v. :

:

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH, :

Respondent. : INFORMAL DECISION

: Appeal No. 87 0505

: 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 second and third quarters 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. The tax due for the second quarter of XXXXX amounted to $$$$$. Petitioner paid this tax on XXXXX. Respondent subsequently assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. The tax due for the third quarter of XXXXX amounted to $$$$$. Petitioner paid this amount on XXXXX. Respondent subsequently assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. The total penalty for these two quarters amounted to $$$$$. The total interest as of XXXXX amounted to $$$$$. Petitioner requested a waiver of penalty and interest because the company was waiting for the payment from XXXXX. Petitioner also stated that several clients have filed bankruptcy, causing Petitioner to lose substantial amounts of money. Petitioner further noted that her husband has been ill for two and one-half years and that the company only employs the family. Petitioner stated that she only draws a salary of $$$$$ per month for four people.

FINDINGS

Petitioner is required to pay withholding to the Tax Commission on or before the last day of XXXXX, XXXXX, XXXXX, and January pursuant to Utah Code Ann. 59-14A-44(1) (1953) (new Section 59-10-406(1)). Petitioner failed to timely file the withholding taxes. Respondent properly assessed a 5% penalty pursuant to Section 59-14A-89(b). Petitioner had the burden of proof to establish that Respondent assessed the penalty and interest in error. Section 59-14A-94 (1953). 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 penalty and interest be denied. The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 6 day of August, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

Roger O. Tew R. H. Hansen

Commissioner Chairman

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner