BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0598
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
STATEMENT OF CASE
Pursuant to the Utah Code Ann. § 63-466-5 (l)(b), no hearing was held. A review of the Petitioner's file served as the evidentiary basis for this decision.
Petitioner, XXXXX, filed an untimely withholding return for the first quarter of XXXXX. This was the first report due on Petitioner's account and no tax was due.
Utah Code Ann. §59-10-406 (1) stipulates that employers must file withholding reports on or before the last day of the month following the calendar quarter and Utah Code Ann. §59-10-406 (7) allows for the assessment of penalties for failure to do so.
Petitioner's first quarter reports, which were due XXXXX, but were not received until XXXXX, were untimely. The penalty for failure to file a timely no tax due return as set forth in Utah Code Ann. §59-1-401 (l)(b) is $$$$$. Thus, the penalty assessed is appropriate and in accordance with the Utah Tax Code.
However, Utah Code Ann. § 9-1-407 (7) authorizes the Commission to waive such penalties upon a showing of a reasonable cause. Because this was Petitioner's first filing experience and no tax was due, the Commission will exercise its discretionary authority and waive the penalty.
DECISION AND ORDER
Based on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission that the request for a waiver of penalty be granted.
DATED this 26 day of August, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis