BEFORE THE UTAH STATE TAX
COMMISSION
__________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0814
: 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 first,
second, and fourth quarters of XXXXX; and the first, second, and third quarters
of XXXXX.
3. Petitioner, as a business entity, was
undercapitalized from the beginning, according to XXXXX, and went out of
business in XXXXX, because it could not compete with larger travel agencies.
4. Some of the difficulty in this case was
initially caused by the fact that XXXXX was under the impression that his
employee had been filing and paying the taxes, but she had not been doing so
for either the federal or state withholding taxes. When Petitioner investigated this difficulty, he found that the
employee was withholding the tax, but she was not aware that it was her
responsibility to also remit the tax.
She was under the impression that her only function was a withholding
and record keeping function.
5. XXXXX is currently unemployed, and under the
burden of some of the debts which accrued while the Petitioner business was in
operation.
6. By letter dated XXXXX, the Tax Commission
reduced the original $$$$$ penalty to $$$$$, a reduction of 50%.
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 sufficient consideration has already been given to
the circumstances of this case in the large adjustment in the penalty which has
already been granted. Additionally,
interest should not be waived because the state was deprived of the use of the
tax funds for a period of time, through no fault of its own, and should be
compensated for this loss of use.
Petitioner is responsible for the actions of its employees, and the
negligence evidenced by Petitioner's employee in not filing and paying the
taxes is negligence for which Petitioner is responsible. Therefore, the penalty is appropriate.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the remaining penalty and interest
associated with Petitioner's withholding tax for the first, second, and fourth
quarters of XXXXX; and the first, second, and third quarters of XXXXX.
Interest, however, shall be adjusted to account for the previous reduction in
the penalty as noted on the XXXXX, Tax Commission letter. It is so ordered.
DATED
this 27th day of June, 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