BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-1069
: 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 was XXXXX.
The Petitioner agreed that the decision in this matter could be based upon evidence previously presented in companion case 91-1068. Based upon the evidence and testimony presented in that case, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is withholding tax.
2. The period in question is XXXXX through XXXXX.
3. At the beginning of XXXXX, the Petitioner changed from a manual to a computerized accounting system. When it came time to file the withholding tax return for the first quarter of XXXXX, the data provided by the computerized system was incorrect. At that same time the Petitioner was involved in preparations for her XXXXX. Rather than file a withholding tax return for the first quarter XXXXX with the information she had, the Petitioner instead continued to work with her accounting system to attempt to correct its error. By the time the second quarter XXXXX tax return came due, the Petitioner had determined that her accounting system could not be salvaged. She therefore returned to the manual system she had previously used. Also, the Petitioner began suffering from vision problems, attributable to stress. As a result of all of the foregoing problems, the Petitioner did not submit quarterly withholding tax returns for any of the quarters in XXXXX until XXXXX.
4. The Petitioner has paid the amount of tax due for XXXXX quarters of XXXXX. She requests waiver of penalty in the amount of $$$$$ assessed against her for late filing and late payment of her withholding tax liability.
5. Except for the foregoing difficulties, the Petitioner has filed and paid her withholding tax liability in a timely manner.
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
While the Petitioner's difficulties with her computerized accounting system are understandable, as are the additional difficulties regarding her XXXXX and her own health, it remains the Petitioner's obligation to file her withholding tax reports and pay the liability established thereby in a timely manner. Under the circumstances of this case, the Petitioner could reasonably have filed reports with the information available, then corrected those reports when more accurate data was provided. Had she done so, she could have avoided imposition of penalties as well as a substantial portion of the interest charges.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties and interest associated with the Petitioner's withholding tax returns for XXXXX through XXXXX. It is so ordered.
DATED this 3rd day of December, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes