90-0996 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-0996

: Account No. XXXXX

_____________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal telephone hearing on XXXXX. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX and 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 months of XXXXX and XXXXX.

3. Petitioner files and pays its withholding taxes on a monthly basis. For XXXXX, Petitioner states that its former bookkeeper became very ill and was rendered incapable of filing the taxes timely. For the remaining periods, Petitioner states that Petitioner reduced its staff so as to reduce Petitioner's total withholding to less than $$$$$ per month.

Therefore, Petitioner filled out form TC-96C indicating such change so that Petitioner could then begin filing on a quarterly basis, but Petitioner did not enter on this form the effective date of the change.

4. By letter dated XXXXX, the Tax Commission reduced the penalty assessed in this case to $$$$$.

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

The extenuating circumstances of this case have already been taken into account in the reduction of the penalty previously granted. Consistent with established Tax Commission policy in similar cases, a further reduction in the penalty amount would not be appropriate. Interest is not waived since the state was deprived of the use of the tax funds in question for a period of time and should be compensated for that loss of use.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a further waiver of the penalty and interest associated with the months of XXXXX and XXXXX. It is so ordered.

DATED this 6th day of February, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner