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