88-0743 - Withholding Tax

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88 0743

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 a waiver of the penalty assessment of Petitioner's second quarter XXXXX withholding tax return. Pursuant to Utah Code Ann. 63-46b-5(1)(b) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner failed to file a timely second quarter XXXXX withholding tax return and was assessed a $$$$$ late filing penalty. Petitioner's failure to file a timely return was due to an oversight on the part of XXXXX, Office Manager and Representative for the Petition. Petitioner asserts that immediate action taken to correct the situation coupled with the excellent filing record of the Petitioner is sufficient to warrant a waiver of the penalty assessment.

FINDINGS

Utah Code Ann. 59-10-406(1) provides that each employer shall file with the Commission a withholding tax return on a quarterly basis. The return is due on or before the last day of the month following the calendar quarter. Petitioner's failure to file the report as required opens the employer to liability for late filing and late payment penalties.

Utah Code Ann. 59-l-401(1)(b) provides that a penalty of the greater of $$$$$ or 10 percent of the tax due shall be assessed for failure to file a timely tax due or no tax due return. Utah Code Ann. 59-l-401(7) authorizes the Commission to waive such penalties upon a showing of reasonable cause. However, negligence or carelessness on the part of the Petitioner cannot be considered to be reasonable cause.

DECISION AND ORDER

Based on the foregoing facts, it is the decision of the Commission that the request for waiver of penalties be denied.

DATED this 27 day of September, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

FOR THE COMMISSION

G. Blaine Davis

Commissioner