89-1310 - 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. 89-1310

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. The Petitioner was represented by 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 periods in question are the fourth quarter XXXXX and the first quarter, XXXXX.

3. Petitioner requests waiver of penalty and interest assessments based upon the fact that during the periods in question, Petitioner's secretary who is responsible for withholding taxes did not make the required deposits when they were due. Upon discovering this problem, Petitioner immediately paid the taxes in question and requested a waiver of penalty and interest.

4. Petitioner suspects that there may have been embezzlement on the part of this employee which contributed to the problem. Petitioner presented no evidence as to this fact.

CONCLUSIONS OF LAW

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

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

3. Such reasonable cause has not been shown in this case. Mere negligence on the part of an employee is not sufficient cause for a waiver of penalty and interest. Petitioner was unable to provide any proof of embezzlement, and there is, therefore, no cause for waiver of penalty and interest in this case.

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 17th day of May, 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