90-1411 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX,

Petitioner, :

: INFORMAL DECISION

:

:

COLLECTION DIVISION OF THE : Appeal No. 90-1411

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

Petitioner, XXXXX, appeals the imposition of $$$$$ in late filing and late payment penalties with respect to his withholding tax liability for the third and fourth quarters XXXXX. Pursuant to the Utah Administrative Procedures Act and the rules of the Utah State Tax Commission, this matter is conducted as an informal adjudicatory proceeding. As no hearing has been requested, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

Petitioner hired his first employee and became subject to withholding tax during the third quarter XXXXX. Petitioner's sister took care of his bookkeeping; she was unaware of the requirement that she file and pay withholding reports on a quarterly basis. Consequently, no such reports were filed for the third or fourth quarter XXXXX. In XXXXX, Petitioner's wife assumed bookkeeping duties and discovered the error regarding withholding tax. With the assistance of an accountant, the delinquent returns were filed and paid on XXXXX. The total tax due for both quarters in question was $$$$$.

DECISION AND ORDER

The errors of Petitioner's bookkeeper do not excuse Petitioner's late filing and late payment of withholding tax for the third and fourth quarters XXXXX. However, mitigating circumstances exist which constitute reasonable cause for reduction of the late filing and late payment penalties. The Tax Commission therefore reduces the late filing and late payment penalties in this matter to a total of $$$$$. It is so ordered.

DATED this 24th day of September, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner