88-0640 - Withholding Tax

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

:

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0640

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission for reconsideration of a Commission decision denying a request for waiver of penalty assessments on Petitioner's third and fourth quarter XXXXX withholding tax. Pursuant to Utah Code Ann. §63-46b-5(1)(b), no hearing was held. A review of the Petitioner's file served as the evidentiary basis for this decision.

Petitioner, XXXXX, was in the start-up phase of business during the last half of XXXXX. Petitioner failed to file withholding reports for the third and fourth quarters of that year. After receiving delinquency notices, Petitioner remitted the taxes due and requested a waiver of the $$$$$ penalties which had been assessed. The penalties were subsequently reduced to $$$$$; however, Petitioner requests that the remaining $$$$$ penalty be waived.

FINDINGS

Utah Code Ann. §59-10-406(1) stipulates that all employers must remit all taxes withheld from employees' wages during the preceding quarter. This remittance is due on the last day of the month following the calendar quarter. Thus, Petitioner's reports for the third and fourth quarters were due not later than XXXXX and XXXXX, respectively. The XXXXX remittances were therefore untimely, which opened the Petitioner to liability for penalties under Utah Code Ann. §59-1-401(1)(b). This statute provides for a penalty of at least $$$$$ for each untimely filing of any return. Petitioner was justifiably assessed $$$$$ for each quarter's late filing. The fine has already been reduced, upon division recommendation, to $$$$$.

DECISION AND ORDER

Based on the foregoing facts, it is the decision and order of the Commission that the request for a waiver of the remaining $$$$$ penalty be denied.

DATED this 6 day of October, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

FOR THE COMMISSION

G. Blaine Davis

Commissioner