91-0926 - Withholding Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: ) INFORMAL DECISION

XXXXX ) Appeal No. 91-0926

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

The issue before the Commission is Petitioner's request for waiver of a late payment penalty of $$$$$ assessed in connection with Petitioner's XXXXX quarter XXXXX withholding tax.

The Petitioner operates a small XXXXX. It is his practice when issuing payroll checks to also prepare a check to the State Tax Commission in payment of the amount of any withholding tax due on the payroll check. During the fourth quarter of XXXXX, the Petitioner prepared two such checks totaling $$$$$. During the first quarter of XXXXX, the Petitioner prepared two other such checks, totaling $$$$$. When filing his withholding tax report for the fourth quarter of XXXXX, the Petitioner inadvertently placed the two withholding tax checks for the first quarter of XXXXX in the envelope with his return. As a result, the Petitioner's report showed liability of $$$$$, but included payment of only $$$$$. This error was not discovered until the Tax Commission notified the Petitioner that a portion of the tax remained unpaid. The Petitioner then issued a check for the balance.

Apart from the present situation, the Petitioner has filed and paid his withholding tax liability in a timely manner.

DECISION AND ORDER

Based upon the Petitioner's past record of timely filing and payment of his tax liability, and the inadvertent nature of the error that caused his late payment during the period in question, the Tax Commission finds sufficient cause exists to waive the penalty associated with the withholding tax for the fourth quarter XXXXX. It is so ordered.

DATED this 16 day of September, 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