BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL DECISION
: Appeal No. 89-1242
COLLECTION DIVISION OF THE :
STATE TAX COMMISSION OF UTAH, )
: Acct No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission requesting waiver of a penalty assessment on Petitioner's second quarter XXXXX withholding tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j) (1986 Rep., 1988 Supp.) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.
At or near the time in question, Petitioner switched from filing its federal and FICA withholding returns from a quarterly to a yearly basis and in the process overlooked the payment of the second quarter Utah state withholding tax and the filing of its return for that quarter. When the return for the third quarter of XXXXX was prepared, Petitioner became aware of the fact that the second quarter return had not been filed. Petitioner then attempted to pay both the second and third quarter tax liabilities at the same time. However, this payment was $$$$$ less than the actual liability due because of a clerical error on the part of the Petitioner. When Petitioner subsequently realized that this error had occurred, Petitioner paid the $$$$$ plus interest to the State Tax Commission.
Utah Code Ann. §59-1-401 (1987 Rep., 1989 Supp.) provides that penalties shall be assessed for failure to timely pay taxes due and for failure to file timely tax returns. Utah Code Ann. §59-1-401(8) (1987 Rep., 1989 Supp.) provides that the Tax Commission may, upon reasonable cause shown, waive or reduce penalties assessed under the above statute. Reasonable cause has not been shown in this case for a waiver of the penalties assessed. Although the failure to file the tax return and to pay the appropriate taxes were inadvertent omissions on the part of the Petitioner, these circumstances, of themselves, are not sufficient to show reasonable cause. Mere mistake on the part of the Petitioner is not sufficient reasonable cause for waiver of the penalty.
DECISION AND ORDER
Based on the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty is denied.