91-1180 - Withholding Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________

In Re: :

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-1180

_________________________

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 were XXXXX Assistant Controller.

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 XXXXX.

3. From the time the Petitioner began doing business in XXXXX, it relied upon its office manager to prepare and file various tax returns. With respect to Petitioner's payroll and payroll taxes, it also relied upon a payroll service to prepare its payroll checks. The payroll service provided the office manager with a check list of payroll tax filing requirements.

4. During XXXXX and early XXXXX, the Petitioner became increasingly aware of the office managers' inability to perform her duties due to various personal problems. The office manager was ultimately discharged from employment in XXXXX. At that time, her duties were assumed by others in the organization.

5. In XXXXX, Commission staff notified the Petitioner that W-2 forms for a total of XXXXX employees had not been filed for XXXXX and XXXXX. Commission staff therefore imposed a penalty of $$$$$ per missing W-2 form, for a total of XXXXX against the Petitioner.

6. The Petitioner's office manager had failed to file the foregoing W-2 forms, and had also failed to advise the Petitioner that the forms had not been filed.

7. Although the Petitioner's office manager had failed to submit the required W-2 forms and forms TC-96, the Petitioner had paid the full amount of its withholding tax in a timely fashion.

8. Except for the foregoing failure to file W-2 forms and TC-96 forms for XXXXX and XXXXX, the Petitioner has filed and paid its withholding tax liability in a timely fashion.

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

In view of the fact that the Petitioner has a good history of compliance with withholding tax requirements, and had actually paid the withholding tax due with respect to XXXXX and XXXXX, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the Petitioner's withholding tax for XXXXX and XXXXX. It is so ordered.

DATED this 10th 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