87-1178 - Withholding

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1178

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to a formal hearing from an informal decision rendered by the Utah State Tax Commission on XXXXX, which decision denied Petitioner's request for waiver on withholding tax account No. XXXXX for XXXXX. A formal hearing in the above-captioned matter was held on XXXXX in the XXXXX. G. Blaine Davis, Commissioner, and David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX, C.P.A., represented the Petitioner. Petitioner acknowledged that the check was not sent with the return when the return was filed for XXXXX. Petitioner stated that this was due to a simple oversight. Petitioner stated that XXXXX is a non-profit organization engaged in the training and employment for severely mentally handicapped people. Petitioner made a sincere attempt to follow the rules and had sufficient funds with which to pay the taxes at the time of the filing of the form. Petitioner paid the tax and the interest as soon as the notice and demand for payment was sent by Respondent. Petitioner noted the good prior filing history and requested a waiver of the penalty.

FINDINGS OF FACT

Withholding tax for XXXXX was due by the end of XXXXX. Petitioner timely filed the withholding tax form but did not include a check. Payment was not received until XXXXX. Respondent assessed a 10 percent late payment penalty pursuant to Utah Code Ann. 59-14A-89 (1953). The penalty statute has since been recodified to59-1-401.

CONCLUSIONS OF LAW

Petitioner was negligent in failing to include a check with the return for XXXXX. The reasonable man would have included a check with the return. No evidence has been submitted which would establish reasonable cause for failure to include the check.

FINAL DECISION

Based on the foregoing the Utah State Tax Commission hereby denies Petitioner's request for waiver of penalty on withholding account No. XXXXX for XXXXX. The assessment penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 31 day of May, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner