88-2563 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner, :

: FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-2563

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Administrative Procedures Act for a formal hearing on XXXXX, before Joseph G. Linford, Presiding Officer. No one representing either Petitioner or Respondent appeared at the hearing although notice dated XXXXX, was duly mailed to the Petitioner. Therefore, this decision is based upon the documents contained in the file.

After reviewing the evidence and arguments of the parties in the record and the recommendation of the presiding officer, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is withholding tax.

2. The periods in question are the fourth quarter of XXXXX, the third and fourth quarters of XXXXX, and the first quarter of XXXXX.

3. Petitioner requests waiver of penalty and interest in this case citing severe cash flow problems during the periods in question. Petitioner also asserts that the State was negligent in taking an inordinate amount of time in notifying the Petitioner of past due taxes.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be imposed for the late payment and filing of taxes.

2. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may, upon reasonable cause shown, waive or reduce penalties and interest assessed under the above statutes.

3. Such reasonable cause has not been shown in this case. Severe cash flow problems alone are not sufficient reasonable cause for waiver of penalties and interest. Additionally, it is the responsibility of each taxpayer to follow through to see that taxes are paid timely. This was not done in this case. Petitioner has provided no basis upon which to grant a waiver.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petitioner's request for waiver of penalty and interest be denied.

DATED this 17 day of May, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner