89-2366 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

:

: Appeal No. 89-2366

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH, )

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission. Present and representing the Petitioner was XXXXX.

Based upon the testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is withholding tax.

2. The periods in question are XXXXX, XXXXX, XXXXX, and XXXXX.

3. Withholding taxes for the above described periods were not paid in a timely manner. The Petitioner's witness testified that failure to pay those taxes were due to the neglect of its accountant who was responsible for the payment of such taxes.

4. The Petitioner was not aware that the withholding taxes had not been paid until it was informed of such fact by the Commission. Upon receipt of such notice, the Petitioner paid all outstanding tax as well as interest.

5. Petitioner requests that the penalties imposed for the late filing and payment of withholding taxes for the above mentioned periods be waived.

6. In support of their request, the Petitioner stated that the business has been in financial trouble for some period of time and ceased doing business in XXXXX. It wasn't until that time they realized the withholding taxes in question had not been paid in spite of assurances from the accountant that all tax matters had been taken care of. Petitioner also stated that outstanding debts of the company were being honored completely, rather than filing for bankruptcy. By so doing, the Petitioner's witness has expended in excess of $$$$$ of his own money to honor the debts.

7. The Petitioner was assessed a penalty in the amount of $$$$$ for having failed to timely file and pay he taxes due.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. Utah Code Ann. §59-1-401(8).

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds sufficient cause exists to reduce the penalty to an amount of $$$$$ for the withholding periods of XXXXX, XXXXX, XXXXX and XXXXX. It is so ordered.

DATED this 27th day of February, 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