91-0456 - Withholding Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

___________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

: Appeal No. 91-0456

: 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 by telephone and representing the Petitioner was XXXXX, Petitioner's Assistant General 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 is XXXXX.

3. In filing Petitioner's withholding taxes for XXXXX, XXXXX completed and submitted a coupon intended for use in XXXXX. As a result, Petitioner's XXXXX tax payment was credited to the XXXXX tax period.

4. When XXXXX prepared Petitioner's withholding tax for XXXXX, she discovered her earlier error. She therefore used the XXXXX coupon to replace the missing XXXXX coupon. She wrote on the coupon that it should be considered as Petitioner's XXXXX filing. However, it was applied by Commission staff to the XXXXX tax period.

5. Because Petitioner's tax filings for XXXXX and XXXXX were switched, the XXXXX withholding tax return appeared to have been filed past its due date. Penalty of $$$$$ and associated interest was therefore imposed against Petitioner.

CONCLUSIONS OF LAW

Utah law authorizes imposition of a 10% penalty for late filing of tax returns. (Utah Code Ann. §59-1-401(2).)

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

In the present case, it appears that Petitioner's only error was using the wrong coupon to file its XXXXX withholding tax. Even with that error, the tax itself was paid to the Commission on time.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of penalty and interest in connection with Petitioner's withholding tax liability for XXXXX. It is so ordered.

DATED this 15th day of July, 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