BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, :
: FINDINGS-OF
FACT
v. : CONCLUSIONS OF LAW
: AND FINAL
DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 89-1244
UTAH STATE TAX COMMISSION :
: Acct No.
XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
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 the 22nd day of September XXXXX before Joseph G.
Linford, Presiding Officer. Petitioner
was represented by XXXXX. Respondent
was not represented at the hearing.
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 (Petitioner files on a monthly basis).
3.
Petitioner operates two companies. One
company files its withholding tax returns on a quarterly basis while the other
company files its returns on a monthly basis.
Most of Petitioner's other taxes for the two companies are reported and
remitted on a quarterly basis.
4.
The late payment of the taxes in question is due to "human oversight"
in that it has been difficult for Petitioner in the past to remember to pay
every month rather than on the usual quarterly basis.
5.
This oversight was corrected as soon as it was discovered and the taxes were
paid within weeks of the due date.
6.
On XXXXX, Petitioner received a Notice of Delinquency and Demand for Payment
from the Utah State Tax Commission. On
XXXXX, Petitioner filed a request with the Tax Commission to have the penalty
and interest amounts waived. This request was denied by a letter dated
XXXXX. Petitioner then remitted the
amount of taxes, penalties and interest due in the original demand which they
received on XXXXX.
7.
Petitioner now requests that the Tax Commission waive the penalties and
interest assessed on this account or in the alternative, that just the interest
amounts be waived that accrued from XXXXX to XXXXX, which is the period between
when Petitioner filed their request for waiver and the time that request was
denied.
CONCLUSIONS OF LAW
1.
Utah Code Ann. §59-1-401 and §59-1-402 provide that penalties and interest
shall be assessed upon the late filing of tax returns and the late payment of
taxes due.
2.
Utah Code Ann. §59-1-401(8) provides that the Tax Commission may, upon
reasonable cause shown, waive or reduce the penalties or interest assessed
under the above statutes.
3.
Such reasonable cause has been shown in this case. The waiver of penalty and interest is warranted based on the fact
that Petitioner took the initiative in resolving the problem as soon as it was
discovered, and the problem was the result of an error instead of an attempt to
knowingly avoid or delay payment of taxes.
Petitioner also has a good past filing and payment history.
DECISION AND ORDER
Based
on 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 granted.
DATED
this 27th day of February , 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