90‑0098

Withholding

Signed 8/8/90

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

XXXXX

Petitioner, )

) INFORMAL DECISION

v. )

COLLECTION DIVISION OF THE ) Appeal No. 90‑0098

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 requests a waiver of the penalty and interest assessed for failure to timely file and pay taxes on a monthly basis for the months of XXXXX. Before this time, Petitioner was on a quarterly filing basis and notice was received by an employee of Petitioner that status would change to a monthly filing as of XXXXX. This employee, however, apparently ignored this letter and continued to operate as previously. This employee was later discharged by Petitioner and a new employee was hired who discovered the problem and then took steps to rectify it.

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 not been shown for waiver of the penalty in this case. Mere negligence or incompetence of an employee is not sufficient reasonable cause for waiver of penalty and interest. An employer is considered responsible for the actions of its employees and, therefore, an employee's negligence is the negligence of the employer.

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 and associated 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

CommissionerCommissioner

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 R861‑5A‑l(p) and Utah Code Ann. '63‑46b‑14(3)(a).

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