91-0001

Withholding Tax

Signed 4/12/91

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: ) FINDINGS OF FACT : CONCLUSIONS OF LAW

XXXXX ) AND FINAL DECISION

:

) Appeal No. 91‑0001

: 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 the months of XXXXX, XXXXX, XXXXX, and XXXXX, XXXXX.

3. Prior to the periods in question, the Petitioner had been filing and paying its withholding taxes on a quarterly basis. Beginning with the periods in question, Petitioner was changed by the Tax Commission to a monthly filing status.

Petitioner had not received any notification of this change. Before the periods in question, Petitioner had an outside accountant doing its taxes, and this accountant had also not received any notification of the change to monthly filing. During the periods in question, Petitioner did not receive any tax return booklets from the state, either for quarterly or monthly filing. Petitioner had blank quarterly forms which Petitioner copied for each quarter and then completed and mailed with payment for the quarters preceding the second quarter of XXXXX.

6. Petitioner was not notified of the change to monthly filing until

Petitioner received a letter from the Tax Commission dated XXXXX, indicating that Petitioner had not filed the monthly return for XXXXX. Since that time, Petitioner has filed the monthly taxes timely. Since Petitioner has not received any monthly return forms from the Tax Commission, Petitioner has been using a blank form which Petitioner copies and then fills out for each month's filing.

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 penalty and interest in this case should be waived. Petitioner was not notified of the change to monthly filing, and Petitioner proceeded in a prudent manner according to past practice in timely filing and paying quarterly taxes. As soon as Petitioner was notified of the change to monthly filing, Petitioner complied with that requirement.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty and interest associated with the months of XXXXX, XXXXX, XXXXX, and XXXXX. It is so ordered.

DATED this 12 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

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63‑46b‑13(1), 63‑46b‑14(2)(a).

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