BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1518
: 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 XXXXX and XXXXX.
3. Petitioner changed ownership in XXXXX and at
the same time changed its withholding tax account number. Prior to this time, Petitioner had been
filing its withholding taxes on a monthly basis and continued to do so after
the change in ownership and the change of the withholding account number.
However, when the new withholding account number was issued, Petitioner
received a booklet for quarterly deposits instead of monthly deposits. Petitioner thereafter used the quarterly tax
forms to make its monthly tax deposits.
4. Petitioner used the last of these forms to
file its withholding taxes for XXXXX.
Tax Commission records show that this return and payment were filed
XXXXX, one day past the deadline. The
tax return is dated by Petitioner XXXXX and the check which accompanied the
return is dated XXXXX. The back of the
canceled check shows that it was deposited by the Tax Commission on XXXXX. Penalty and interest was assessed because of
the fact that this return and payment were filed one day late.
5. When Petitioner ran out of the tax return
forms, after filing its XXXXX return, Petitioner contacted the Tax Commission
for instructions. The Tax Commission employee with whom Petitioner spoke
indicated that she would mail the new tax return forms, but that if they did
not arrive in time for Petitioner to make its monthly payment, then Petitioner
was to file for both the months of XXXXX and XXXXX at the time of the XXXXX
filing, i.e., XXXXX. Petitioner did not
receive the booklet timely, and therefore did as it was instructed and filed
for both the months of XXXXX and XXXXX on XXXXX. Penalty and interest were assessed for XXXXX, since the filing
and payment should have been made at the end of XXXXX instead of at the end of
XXXXX.
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
Tax Commission finds that the penalty in this case should be waived only for
the month of XXXXX, due to the fact that XXXXX return and payment were just one
day late. Penalty for the month of
XXXXX, however, should not be waived because Petitioner should have contacted
the Tax Commission sooner instead of waiting until its last tax return form was
gone. Petitioner's own lack of prompt
action contributed to the problem, and there is insufficient evidence upon
which to base a finding of reasonable cause.
Interest
should not be waived because the state was deprived 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 been
shown which would justify a waiver of the penalty associated with the
Petitioner's withholding tax for XXXXX.
The penalty for XXXXX is not waived.
Interest is not waived but shall be adjusted to account for the
reduction of the penalty. It is so
ordered.
DATED
this 13th day of June, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner