BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-1441
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 and interest
assessments on Petitioner's third 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,
XXXXX, failed to file a timely withholding return for the third quarter of
XXXXX. The late filing was due to an
oversight and inexperience on the part of a temporary bookkeeper. Petitioner asks that Petitioner's XXXXX-year
perfect filing record be considered as reasonable cause for granting the
request for waiver of the late-payment penalty.
FINDINGS
Utah
Code Ann. §59-10-406 provides that every employer must file withholding returns
and remit the tax due on a quarterly basis.
Failure to do so opens the employer to liability for penalty and
interest assessments.
Utah
Code Ann. §59-1-401(7)(b) provides that a penalty of the greater of $$$$$ or
ten percent of the tax due shall be assessed for failure to timely file a
return; and Utah Code Ann. §59-1-402 authorizes the Commission to make interest
charges at the rate of 12 percent per annum on any unpaid tax. Utah Code Ann. §59-1-401(7) authorizes the
Commission to waive penalty and interest assessments, and the Commission will
do so upon a showing of reasonable cause. Negligence on the part of a taxpayer
is usually not considered reasonable cause. However, in this case, Petitioner's
excellent, long-standing record with the Commission merits recognition and
consideration and is enough to justify a waiver of the late-filing
penalty. However, because the state of
Utah was denied the use of the tax monies, and Petitioner had the benefit of
those monies, the interest assessment should not be waived.
DECISION AND ORDER
Based
on the foregoing, it is the decision and order of the Commission that the
request for a waiver of the penalty assessment be granted. The request for waiver of the interest
assessment is denied.
DATED
this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR
THE COMMISSION