BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1383
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Joseph G. Linford, Presiding
Officer, heard the matter for and on behalf of the 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 months XXXXX through XXXXX, and XXXXX XXXXX.
3.
Petitioner files and pays its withholding taxes on a monthly basis. During the
periods in question, Petitioner was terminating an unsuccessful business
venture. This was a major factor in
causing severe cash flow problems for Petitioner which Petitioner states caused
it to untimely file and pay its withholding taxes for the periods in question.
4.
Petitioner has since paid all of the tax amounts which were due.
5.
Based upon the foregoing, Petitioner requests waiver of the penalty and
interest assessed for the untimely filing and payment of its withholding taxes.
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
Severe
financial stress such as that which Petitioner was experiencing during the
periods in question is not sufficient cause under the law for waiver of penalty
and interest. The withholding tax
amounts collected by Petitioner were funds to which the state was entitled and
which Petitioner was required to remit to the Tax Commission. Although Petitioner's cash flow was perhaps
severely strained during the periods in question, Petitioner did have available
the withholding tax which Petitioner had withheld from its employees' wages and
should have remitted the same to the Tax Commission.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the months XXXXX through XXXXX, and XXXXX XXXXX. It is so ordered.
DATED
this 6 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