90‑0084
Withholding
Signed 9/6/90
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, ) FINDINGS OF
FACT,
) CONCLUSIONS OF LAW
) AND FINAL DECISION
) Appeal No. 90‑0084
COLLECTION
DIVISION OF THE )
UTAH STATE TAX
COMMISSION, )
) 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 on behalf
of the Tax Commission. Present and
representing the Petitioner was XXXXX.
Based upon the evidence and 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 the
second quarter XXXXX through the fourth quarter XXXXX.
3. As a result of an audit conducted
for the second quarter of XXXXX, the Petitioner was assessed a deficiency of
withholding taxes in the amount of $$$$$.
4. The third and fourth quarter XXXXX
withholding tax returns were not filed and paid until XXXXX.
5. As a result of the audit deficiency
and the late filing and payment of the withholding returns, the Petitioner was
assessed a penalty in the amount of $$$$$, as well as interest assessed at the
statutorily required rate.
6. The Petitioner's witness testified
that the Petitioner began business in XXXXX.
The Petitioner was engaged in the manufacturing of printed circuit
boards.
7. Shortly after the Petitioner began
business, the electronics industry underwent a drastic and sudden decline. That decline severely affected the
Petitioner's cash flow. Because of the
loss of business, the Petitioner was unable to pay its withholding taxes for
the periods in question.
8. As a result of obtaining a small
business administration loan in XXXXX, the Petitioner was able to pay its
outstanding tax liabilities with the exception of the amounts that had accrued
for penalties and interest.
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 that sufficient evidence has not been shown which would
justify a waiver or reduction of the penalties and interest associated with the
periods in question. Therefore, the
Petitioner's request is denied. It is
so ordered.
DATED this 6 day of September, 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
NOTICE: You
have ten (10) days after the date of the final order to file a request for
reconsideration or thirty (30) days after the date of final order to file in
Supreme Court a petition for judicial review.
Utah Code Ann. ''63‑46b‑13(1),
63‑46b‑14(2)(a).
^^