91-0064

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. 91‑0064

) 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 period in question is the second quarter of XXXXX.

3. Petitioner states that at the time the return for the period in question was prepared by the Petitioner's accountant, Petitioner was in the process of preparing to move to a new location. During this time, a return for the period in question was inadvertently filed with items that had already been paid rather than with items that had yet to be paid. This error was not discovered until it came time to prepare the return for the following quarter. The Tax Commission received the payment of the taxes in question on XXXXX.

5. A notice was sent from the Tax Commission dated XXXXX, notifying Petitioner of the assessment of penalties and interest for the period in question. This notice was returned by the post office to the Tax Commission because of the lack of a forwarding address. No other notices were sent until Petitioner received a notice dated 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 assessed in this case should not be waived. It is apparent that Petitioner was negligent in failing to file and pay the tax in question in a timely manner. The penalty which has been assessed is a negligence penalty and is appropriate. The Tax Commission also finds that interest should not be waived because the state has been deprived of the use of the tax funds in question for a period of time, through no fault of its own, and should be compensated for that loss of use. The fact that Petitioner did not receive notification until XXXXX, is due at least in part to Petitioner's move and the lack of a forwarding address to which the Commission could mail its notices.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the second quarter of XXXXX. It is so ordered.

DATED this 12th day of April, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

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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