BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0742
UTAH STATE TAX COMMISSION, : 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 first quarter 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 Tax Commission. XXXXX represented the Petitioner.
Petitioner stated that he incorporated in XXXXX and that Petitioner and his father paid themselves as employees. They had been operating as a proprietorship previously. The father handled the office matters, including the filing and payment of taxes. For the first quarter of XXXXX the father omitted the filing and payment of the state withholding tax, although the company had the money to pay it. When the father filed and paid the withholding tax for the second quarter of XXXXX he noticed that the first quarter had not been filed or paid. Both returns were filed at the same time. Petitioner requested a waiver of the penalty and interest.
Payment for the period in question was received on XXXXX. The Tax Commission first notified Petitioner of the assessment of penalty and interest on XXXXX. Petitioner had discovered and paid the tax prior to the notification by the Tax Commission.
Based on Petitioner's immediate payment upon discovery of the error, based on the fact that Petitioner has a good prior filing history, and based on the fact that Petitioner has since installed a control system to insure that returns are timely filed, the Tax Commission, in its discretion, hereby waives penalty on withholding tax account No. XXXXX for the first quarter of XXXXX. Interest shall remain as assessed. The Tax Commission was denied the use of the money during the period in question.
DECISION AND ORDER
Based on the foregoing, it is the decision and order of the Utah State Tax Commission that penalty on withholding tax account No. XXXXX for the first quarter of XXXXX be abated. Interest shall remain as assessed.
The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.
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