BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-1281
_______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. G. Blaine Davis, Administrative Law
Judge, Presiding Officer, heard the matter for and on behalf of the
Commission. At the time set for
hearing, no one appeared or represented the Petitioner, and an Order of Default
was prepared. However, prior to the
time the Order of Default was sent, Petitioner contacted the Administrative Law
Judge by telephone and apologized for not appearing, but represented he had not
seen the notice prior to the date set for hearing, because he had been out of
town. The notice had been sent two
weeks prior to the date set for hearing, but the time did include the XXXXX
weekend and one other weekend. The case
was discussed over the telephone and thereafter other phone calls took place
between XXXXX and XXXXX to discuss the case.
It was ultimately agreed that the case would be heard as a telephone
hearing and a decision would be made upon the merits of the case.
Based
upon the evidence and testimony presented over the telephone, the Tax
Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is payroll withholding
tax.
2. The periods in question are the second,
third and fourth quarters of XXXXX.
3. XXXXX was a company owned by XXXXX and
XXXXX.
4. XXXXX and XXXXX terminated their business
relationship, and XXXXX agreed to continue the business, but it was on a very
minimal basis.
5. The company last had employees on XXXXX.
6. The withholding return for the second
quarter of XXXXX was filed 45 days late.
7. The return for the third quarter XXXXX was
not filed until XXXXX, and the return for the fourth quarter XXXXX was also
filed on XXXXX.
8. The notices for the delinquencies were being
sent to XXXXX. XXXXX, remained in charge of the business and did not receive
the notices being sent from the Tax Commission. However, the returns for the second and third quarter XXXXX were
already substantially delinquent before XXXXX and XXXXX severed their business
relationship.
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
The
returns on which the penalty has been assessed were already delinquent prior to
the time the parties severed their business relationship, and the penalty had
already been incurred prior to the time the parties severed their
relationship. Therefore, the fact that
the notices were sent to the withdrawing owner did not cause the penalty to be
incurred.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty or interest associated with
the withholding return for the second, third and fourth quarters of XXXXX. It is so ordered.
DATED
this 6th day of December, 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