90‑0086
Income
Signed 8/8/90
BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________________
XXXXX
Petitioner, )
) INFORMAL DECISION
v. )
COLLECTION
DIVISION OF THE ) Appeal No. 90‑0086
UTAH STATE TAX
COMMISSION, )
) Account No. XXXXX
Respondent. )
__________________________________
STATEMENT OF
CASE
This is an appeal to the Utah State
Tax Commission requesting waiver of penalty and interest assessment on
Petitioner's withholding tax liability for 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.
Petitioner states that previous to
XXXXX, Petitioner was on a quarterly filing status as far as its withholding
taxes were concerned, but that after XXXXX, Petitioner was switched to a
monthly filing status. Petitioner asserts that no notice was given of this
change and that the first time it realized that such a change had occurred was
on XXXXX, when Petitioner received its new tax forms. Petitioner had filed on a quarterly basis for the first quarter
of XXXXX as they had in the past and feel that since they had not received
proper notice of the change to monthly status, the penalty and interest amount
should be waived.
FINDINGS
Utah Code Ann. ''59‑1‑401 and 59‑1‑402
provide that penalty and interest shall be assessed for the late filing and
payment of taxes. Utah Code Ann. '59‑1‑401(8) provides that upon
reasonable cause shown, the Tax Commission may waive or reduce penalty or
interest assessed under the above statutes.
Such reasonable cause has been shown
for waiver of the penalty in this case since Petitioner had not been informed
of the change and because of the Petitioner's good past record in timely filing
and payment of withholding taxes. Such reasonable cause has not been shown,
however, for waiver of the interest assessed because the state was deprived of
the use of the tax funds for a period of time and should be compensated for
that loss of use.
DECISION AND
ORDER
Based upon the foregoing facts, it is
the decision and order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty is granted and Petitioner's request for waiver of
interest is denied.
DATED this 8 day of August, 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
District Court a petition for judicial review.
Utah State Tax Commission Administrative Rule R861‑SA‑l(p)
and Utah Code Ann. '63‑46b‑14(3)(a).
^^