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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner