BEFORE THE UTAH STATE TAX COMMISSION
v. ) INFORMAL DECISION
) Appeal No. 90-0046
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION, )
: Account No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission requesting a waiver of penalty and interest assessment on Petitioner's withholding tax for the third quarter of XXXXX. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j), no hearing was held. Petitioner's file served as the evidentiary basis for this decision.
Petitioner states that the person responsible for paying Petitioner's taxes overlooked the payment for the period in question until it was overdue. This person was new and unacquainted with the procedures for paying Petitioner's taxes. Petitioner also states that there is no money left at Petitioner's disposal to pay the penalty and interest assessed.
Utah Code Ann. §§59-1-401 and 59-1-402 provide that penalties and interest shall be assessed for the late payment and filing of taxes. Utah Code Ann. §59-1-401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalties assessed under the above statutes.
Such reasonable cause has not been shown in this case. Mere negligence is not sufficient reasonable cause for waiver of penalty and interest assessments, nor is financial hardship. Reasonable cause exists only where the failure to timely pay the taxes was due to circumstances entirely beyond the control of the Petitioner. Mere negligence does not meet this standard.
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 is denied. It is so ordered.
DATED this 20th day of August, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis