89-2698 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX,

Petitioner, :

v. : INFORMAL DECISION

: Appeal No. 89-2698

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION : Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Rules of Administrative Procedures and the Administrative Procedures Act for informal adjudicative proceedings. No hearing was requested therefore, the matter was conducted by review of the file before the Tax Commission.

By way of a letter dated XXXXX, the Petitioner was informed by the Commission that the amount reported to the Commission for withholding taxes during XXXXX was in the amount of $$$$$. That amount was $$$$$ less than the amount calculated by the Commission based upon W-2's, line 2, TC-96.

On XXXXX, the Petitioner remitted the additional withholding plus interest however, did not pay the penalty in the amount of $$$$$ which was assessed for the late payment of taxes.

The Petitioner requested waiver of the penalty associated with that period instead, asking that the penalty be waived. The basis for the request was that earlier in the year, because of an error by the Commission, they had overpaid their withholding taxes for XXXXX. Although, the Petitioner's received a refund for that amount as well as the applicable interest, it was the Petitioner's position that since the Tax Commission was not obligated to pay a penalty for an error the taxpayer should not be obligated to pay a penalty.

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the withholding tax for XXXXX. It is so ordered.

DATED this 2nd day of March, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner