90-2630 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: )

: INFORMAL DECISION

XXXXX )

: Appeal No. 90-2630

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

The Petitioner was assessed a late filing and late payment penalty for the third quarter of XXXXX, and late filing penalty for the fourth quarter of XXXXX. The fourth quarter return was three days late.

The Petitioner represents that he had an existing withholding tax number, and applied for a new number for a second business in XXXXX. However, he was told that he could not obtain a new state number until he had a second federal I.D. number, so he filed a federal application for a second I.D. number. A month later, the Internal Revenue Service told him that they could not issue a second I.D. number and to use the same number for both businesses.

He then mailed his application to the State for a new state I.D. number, but the second quarter taxes were due, so he contacted the Tax Commission and they said to mail them without an I.D. number, which he did. He later had substantial problems clarifying to which account those taxes should be applied. When the third quarter taxes came due he still had not received the new number which had been applied for in prior months. He did not file a return because he only owed $$$$$ in taxes, and did not want to go through the hours of confusion which had resulted from the earlier payment without a number. Additional confusions and discussions went on between the Petitioner and the Tax Commission. He contacted the Tax Commission several times in order to try to get the matter straightened out, and was not able to complete the process. Petitioner represents that he made a good faith effort on numerous occasions to try to obtain a new number and to properly file his taxes, but he was constantly left without being able to fully complete the process. The total amount of tax due for both delinquent quarters was less than $$$$$.

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty associated with the withholding tax for the third and fourth quarters of XXXXX. It is so ordered.

DATED this 16 day of August, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.</