BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: )
: FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX : AND FINAL DECISION
: Appeal No.
91-0336
: Account
No. XXXXX
__________________________
STATEMENT OF CASE
This
matter came before the Utah Tax Commission for a formal hearing on XXXXX Alan Hennebold, Presiding Officer, heard the
matter for and in behalf of the Commission.
Present and representing the Petitioner was XXXXX, Payroll Supervisor,
and XXXXX, Financial Manager.
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 are XXXXX and XXXXX.
3. With respect to Petitioner's liability for
XXXXX, the Petitioner completed and submitted its withholding tax return as
usual. It mailed the return together
with a check and payment of its tax liability to the Utah State Tax
Commission. The Tax Commission has no
record of receiving either the original tax return or payment. On XXXXX, the Commission notified the
Petitioner of its failure to file the XXXXX withholding tax return. The
Petitioner immediately stopped payment of its previously issued check, then
issued another check which it sent to the Commission together with a copy of
its previous report. The Commission
received the return and payment on XXXXX.
A late filing penalty of $$$$$ was assessed against the Petitioner.
With
respect to the XXXXX liability, the Petitioner once again completed the
required return form and mailed it with a check in payment of the tax liability
to the Tax Commission. However, the
Petitioner used separate envelopes for the return and check. The Commission has no record of receiving
either return or check. When the
Petitioner was advised that the Tax Commission had not received its return or
payment, it again stopped payment on the check in question, issued another
check and attached a copy of its original return.
Apart
from the two months in question, the Petitioner has filed and paid its
withholding tax liability as required.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.59-1-401(8).)
DECISION AND ORDER
The
Petitioner has substantiated that it filed and paid its XXXXX and XXXXX
withholding tax liability in a timely fashion.
That fact has been documented with copies of original checks and report
forms, as well as copies of stop order payments to the Petitioners' bank. A review of the Petitioner's history of
filing and payment of taxes indicates that the problems discussed in this
decision are an isolated situation.
Based on the available evidence, the Petitioner may be said to be at
fault only for its failure to mail the XXXXX return and check together.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a reduction of the penalty associated with the XXXXX
and XXXXX withholding tax, to the amount of $$$$$. Interest is not waived, but
will be recomputed in accordance with this decision. It is so ordered.
DATED
this 27th day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes*
Commissioner Commissioner