89-0509 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX, )

Petitioner, ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

v. ) FINAL DECISION

)

)

) Appeal No. 89-0509

COLLECTION DIVISION OF THE )

STATE TAX COMMISSION OF UTAH, )

) Acct No. XXXXX

Respondent. )

_____________________________________

This matter came before the Utah State Tax Commission pursuant to the Utah Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on XXXXX. Joseph G. Linford, Presiding Officer, was the Hearing Officer at the hearing. Petitioner was represented by XXXXX, President of XXXXX. No one appeared to represent Respondent.

Based upon the recommendation of the Presiding Officer and upon the evidence and arguments in the file and presented at the hearing, the Tax Commission makes its:

FINDINGS OF FACT

1. The tax in question is withholding tax.

2. The period in question is January through March of XXXXX.

3. Petitioner, opened for business on XXXXX. XXXXX is the parent company of Petitioner and as such XXXXX does all of Petitioner's accounting and did so at the time in question.

4. Petitioner applied for a withholding account number in XXXXX and then XXXXX took over on all of the matters involved in this appeal from that point on.

5. Prior to the deadline for filing withholding returns on XXXXX, Petitioner was not notified by the Tax Commission that an account number had been assigned. The Petitioner was also not sent the appropriate forms to file. Petitioner had relied on XXXXX to take care of these things, but discovered that XXXXX was not doing so. The Petitioner subsequently made numerous attempts by telephone to obtain this information and the forms from the Tax Commission but was unsuccessful.

6. On XXXXX, having still not received anything from the Tax Commission, Petitioner requested blank returns. Upon receiving those returns, Petitioner filed returns for both the first and second quarters of XXXXX.

7. Petitioner now seeks a waiver of penalty and interest assessed for the late filing of the first quarter return.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and59-1-402 (1987 Rep., 1989 Supp.) provide that penalties and interest shall be assessed on the late payment of taxes and on the late filing of tax returns.

2. Utah Code Ann. §59-1-401(8) (1987 Rep., 1989 Supp.) provides that, upon reasonable cause shown, the Tax Commission may waive or reduce penalties and interest imposed under the above statutes.

3. Such reasonable cause has been shown by Petitioner, in view of the fact that the late filing was not intentionally caused by Petitioner, but was largely caused by circumstances and people mostly beyond Petitioner's control.

FINAL DECISION

Since Petitioner's tardiness in filing its returns for the first quarter of XXXXX was not the fault of the Petitioner, it is the decision of the Utah State Tax Commission that the Petitioner's request for the waiver of the penalty amount of $100 is granted and that the Petitioner's request for a waiver of the interest amount of $5.99 is denied. It is so ordered.

DATED this 1ST day of SEPTEMBER, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B.Pacheco G. Blaine Davis

Commissioner Commissioner