BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
90-0112
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah Tax Commission for a formal hearing on XXXXX. Alan Hennebold, Presiding Officer, heard the
matter for and in behalf of the Commission.
Present and representing the Petitioner was XXXXX, Owner.
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 period in question is XXXXX.
3.
Based upon a federal audit of the Petitioner, the Audit Division of the Utah
State Tax Commission assessed additional tax of $$$$$ against the Petitioner
for the period in question. Penalty in
the amount of $$$$$ and associated interest was also assessed against the
Petitioner.
4.
The Petitioner paid the amount of tax due under the audit then filed its
request for waiver of penalty and interest.
The
Tax Commission has previously waived all penalty in this matter. The Petitioner seeks waiver of interest
charges as well.
5.
The Petitioner requests waiver of interest on the grounds that its state tax
liability resulted from the federal audit, which had assessed withholding tax
on small payments made to casual labor.
Such payments would not have been subject to state withholding tax. However, the Audit Division concluded that
the Petitioner's liability for state tax was equivalent to one-third of its federal
liability under the audit. The
Petitioner did not challenge or appeal the Audit Division's conclusions.
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
In
the present case, the Tax Commission notes the Petitioner's contention that the
underlying tax in this matter was assessed against the Petitioner based on his
liability as determined under a federal audit.
In essence, the Petitioner contends that if the state had audited his
records itself, it would have concluded that no additional tax was due. Whether that is true or not, the Petitioner
did not appeal the Audit Divisions' determination of his tax liability. The Tax Commission must therefore conclude
that the tax assessment levied against Petitioner is correct. Interest in such situations is no more than
a reasonable charge to the Petitioner for its use of tax funds during the
period the Petitioner held such funds.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the interest associated with the
Petitioner's withholding tax liability for the period of XXXXX. It is so ordered.
DATED
this 27 day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes*
Commissioner Commissioner