89-0316 - 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. 89-0316

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 appeared representing either the Petitioner or the Respondent, although a notice of the hearing, dated XXXXX, was duly mailed to the Petitioner. Consequently this decision is based upon the documents included 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 period in question is XXXXX to XXXXX.

3. The XXXXX Company was purchased by its current owner in XXXXX. From that time until XXXXX, withholding taxes were paid under the previous withholding tax account number XXXXX. The Petitioner did not receive its new withholding account number until June XXXXX.

4. In XXXXX, the check which Petitioner sent to the Tax Commission in payment of withholding taxes was returned, apparently because of the need for a new withholding tax number in consequence of the change in ownership of the company. Following that there were no returns filed nor taxes paid until June XXXXX.

5. Prior to XXXXX, late filings and payments of taxes were common under the old withholding tax number.

CONCLUSIONS OF LAW

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

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

3. Such reasonable cause has not been shown in this case. Petitioner gives no substantial reason as to why the tax payments and filings were late, other than the difficulty with the change in withholding tax numbers. This is something that Petitioner had the responsibility for following up on and insuring that it was taken care of properly. Petitioner was negligent in that responsibility.

DECISION AND ORDER

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

DATED this 4th day of April, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner