BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW
v. : AND FINAL DECISION
:
: Appeal No.
89-1301
COLLECTION
DIVISION OF THE :
UTAH STATE TAX COMMISSION :
: Account
No. XXXXX
Respondent :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act for a formal hearing on XXXXX before Joseph G. Linford,
Presiding Officer. Petitioner was
represented by XXXXX and XXXXX. No one
representing the Respondent appeared 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 the first quarter of XXXXX.
3.
Petitioner mistakenly overlooked the payment of withholding tax for the first
quarter of XXXXX. When Petitioner
discovered this error in XXXXX, Petitioner personally visited the Utah State
Tax Commission offices and paid all the tax and interest due and requested a
waiver of the penalty.
4.
On XXXXX, Petitioner received a notice of failure to file from the Tax
Commission and telephoned the Tax Commission at that time. Petitioner was told to file another request
for waiver of penalty.
5.
On XXXXX, Petitioner received from the Tax Commission a Notice of Warrant and
Demand for Payment. Petitioner
telephoned the Tax Commission again.
Petitioner was then told to submit a third request for waiver of the
penalty. Penalties and interest at this
time were in the amount of $$$$$.
6.
On XXXXX, Petitioner received a Notice of Warrant issued for nonpayment of
taxes from the Tax Commission and again telephoned Tax Commission offices. Petitioner was again told to submit a fourth
request for waiver of penalty. Penalty
and interest due at this time was $$$$$.
7.
On XXXXX, Petitioner was notified by the Tax Commission that Petitioner's
request for waiver of penalty and interest had been denied. This letter represented that the amount due
was $$$$$.
8.
Petitioner now requests that the penalties and interest be waived.
CONCLUSIONS OF LAW
1.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall
be assessed for late filing and payment of withholding tax.
2.
Utah Code Ann. §59-1-401(8) provides that the Commission may upon reasonable
cause shown waive some or all of the penalties and interest assessed under the
above statutes.
3.
Such reasonable cause has been shown for waiver of a portion of the penalty and
interest amounts assessed in this case.
Petitioner admits that it overlooked payment of withholding tax for the
first quarter XXXXX. Although this was
not intentional yet mere negligence on the part of Petitioner is not sufficient
for a complete waiver of all penalty assessments. However, Petitioner had to file four requests for waiver of
penalty before any action was taken on Petitioner's account. Throughout the entire time period,
Petitioner did everything possible to attempt to resolve the matter as
expeditiously as possible. Petitioner
should not be required to pay interest that accrued after Petitioner's initial
request for waiver should have been acted upon, nor to pay any penalty beyond
the original 10% negligence penalty.
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
partially granted. Any interest amounts
accruing after the date on which Petitioner filed the first request for waiver
in XXXXX are waived. Penalty is reduced
to the original 10% negligence penalty, and interest is to be calculated
accordingly.
DATED
this 12th day of April, 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