BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-0742
UTAH STATE TAX COMMISSION, : Acct.
No. XXXXX
Respondent. :
_____________________________________
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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner