90-2660 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: INFORMAL DECISION

XXXXX )

:

: Appeal No. 90-2660

: Account No. XXXXX

_____________________________________

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

XXXXX requests waiver of a $$$$$ penalty imposed against it for late payment of its Utah withholding tax for XXXXX. The tax in question was due on XXXXX but was not paid until XXXXX.

The taxpayer explains that its regular office manager was absent during the time the tax payment should have been made to the Utah State Tax Commission. A replacement worker mistakenly made the payment to another tax account. When the error was discovered by the taxpayer approximately 3 weeks later, it was corrected by full payment of the tax and interest due.

Late payment penalty of $$$$$ was initially imposed against the taxpayer, which penalty was subsequently reduced to $$$$$.

DECISION AND ORDER

The Tax Commission notes the Petitioner's contention that its failure to properly pay withholding tax for XXXXX was due to the error of the Petitioner's employee. The Tax Commission has previously reduced the amount of the penalty imposed from $$$$$ to $$$$$ in recognition of the inadvertent nature of the error. However, the Tax Commission finds sufficient cause does not exist to completely waive the penalty associated with the Petitioner's withholding tax for XXXXX. The imposition of the penalty of $$$$$ therefore remains in effect. It is so ordered.

DATED this 19 day of February, 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