91-0815 - Withholding Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-0815

: Account No. XXXXX

___________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, 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 period in question is XXXXX.

3. The bookkeeper for the Petitioner who is responsible for calculating, paying, and filing the withholding tax returns, was ill and absent from work from XXXXX, through XXXXX because of bronchial pneumonia.

4. Because of the illness of the bookkeeper, the withholding tax for XXXXX, was not filed until her return on XXXXX.

5. It was the bookkeeper's common practice to prepare and file the returns during the last few days of the month in which they were due. Because of her illness, the Petitioner was unable to perform that duty. No one else in the organization was sufficiently familiar with the bookkeeping operation to make the payment as required.

6. When the bookkeeper did prepare and pay the withholding tax, she made an error in the calculation by adding the XXXXX and XXXXX amounts together.

Therefore, when paying the XXXXX withholding tax, the Petitioner reported withholding in the amount of $$$$$, when in fact, the actual tax due for that period was $$$$$.

7. As a result of the late filing and payment of the XXXXX withholding tax return, the Petitioner was assessed a penalty in the amount of $$$$$.

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

Based upon the foregoing, the Tax Commission finds sufficient cause has been shown which would justify a waiver of the penalty for the period in question. Interest should be adjusted accordingly. It is so ordered.

DATED this 15th 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