BEFORE THE UTAH STATE TAX
COMMISSION
___________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No.
91-0455
: Account
No. XXXXX
____________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were
XXXXX and 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 XXXXX through
XXXXX.
3. In XXXXX, Petitioner acquired an enterprise
doing business in Utah. In January
XXXXX, Petitioner turned the enterprise over to another company. As a result of the foregoing, Petitioner's
staff in Utah was reduced to one employee.
4. Petitioner paid its employees through an
independent payroll service. The
payroll service was also expected to file and pay applicable payroll
taxes. The payroll service failed to
file or pay Petitioner's quarterly withholding reports in Utah within the time
limits allowed by law.
5. Due to the payroll service's late filing and
late payment of withholding tax for the periods in question, penalties of $$$$$
have been assessed against Petitioner, in addition to its tax liability of
$$$$$. Interest has also been assessed.
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
Although
the Commission recognizes that Petitioner's failure to timely file and pay its
withholding tax reports for the periods in question was due to the errors or
neglect of its payroll service, the Petitioner is ultimately responsible to see
that such obligations are properly discharged.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a reduction of the penalty and interest associated
with the Petitioner's withholding tax for the periods in question. It is so ordered.
DATED
this 3rd day of December, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner