BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX,
Petitioner, :
v. : INFORMAL DECISION
: Appeal No.
89-2478
COLLECTION
DIVISION OF THE :
UTAH STATE TAX COMMISSION, : Acct
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission requesting waiver of a penalty
and interest assessment on Petitioner's withholding tax return for the fourth
quarter XXXXX. Pursuant to Utah Code
Ann. §63-46b-5(1)(b,j) no hearing was held.
A review of Petitioner's file served as the evidentiary basis for this
decision.
The
total amount of withholding tax due for the fourth quarter of XXXXX was
$$$$$. Petitioner alleges that when the
return for that quarter was sent to the Tax Commission, Petitioner included on
the return a $$$$$ increase above the amount due for that quarter to make up
for an underpayment on the second quarter of XXXXX. This would have made the total amount due $$$$$.
Petitioner
further alleges that when the $$$$$ increase was entered into the computerized
accounting system the computer issued the check for the $$$$$ instead of the
total amount of $$$$$. Petitioner did
not realize that this error had been made until Petitioner received the Notice
and Demand for payment of taxes dated XXXXX.
Petitioner then immediately sent a check for the amount of tax owing for
the fourth quarter of XXXXX which was $$$$$.
FINDINGS
Utah
Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be
imposed for the late payment and filing of withholding taxes. Utah Code Ann.
§59-1-401(8) provides that upon reasonable cause shown the Tax Commission may
waive or reduce penalties and interest assessed under the above statutes.
Such
reasonable cause has not been shown for a waiver of the penalty and interest
assessed in this case. Mere error or
negligence on the part of a taxpayer is not sufficient reasonable cause under
the statute, for a waiver of penalty and interest. Each taxpayer is expected to pay the correct amount of tax in a
timely manner and to exercise sufficient control over computer or other systems
so that errors such as the error in this case do not occur.
Regarding
the request for waiver of interest, he state did not have the use of the tax
funds between the time they were due and the time they were paid by the
Petitioner and the state.
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 denied.
DATED
this 14th day of March, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
FOR THE COMMISSION
G. Blaine
Davis
Commissioner