BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-2688
: 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 fiduciary income tax.
2.
The period in question is the tax year XXXXX.
3.
In XXXXX, XXXXX was acquired by XXXXX.
Most of the employees who worked for XXXXX subsequently left employment
under XXXXX. The XXXXX was also moved
to a new location. These former
employees told XXXXX that the taxes for this account and several others had
been taken care of and paid.
4.
The fact that the return had not been filed for XXXXX was not discovered by the
new XXXXX employee until XXXXX, at which time XXXXX prepared the return for the
year in question and submitted it to the Tax Commission. XXXXX testified that this new employee in
the XXXXX was untrained and did not properly deal with the account in question
in order to ensure that the tax was paid in a timely manner.
5.
XXXXX testified that this case is one among several other cases in which XXXXX
has dealt with the same problem, and in all of those cases under these same
circumstances and for the same period in question, the penalties have been
waived informally by the Tax Commission.
XXXXX also testified that extensions for all of these accounts have been
filed and that subsequent returns have been timely.
6.
Tax Commission records indicate that the circumstances which led to the penalty
abatements in the other cases to which XXXXX refers were different
circumstances than those of this case.
For example, in these other cases the penalty was waived because it was
only a nominal amount, or because of some delay by the Tax Commission in acting
on waiver requests, or where penalties and interest were erroneously imposed by
the Tax Commission even though the taxpayer conformed with appropriate
extension requirements. None of these
factors are apparent in this case.
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
XXXXX
is responsible for the actions of its employees. The facts show that errors were made by those employees, because
of lack of training or otherwise, and the negligence penalty is
appropriate. XXXXX has a duty to train
its employees adequately and to ensure that the employees comply with the law.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown to justify a waiver of the penalty associated with the tax year
XXXXX. It is so ordered.
DATED
this 2 day of April, 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