91-1301 - Withholding Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-1301

: Account No. XXXXX

__________________________


STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. G. Blaine Davis, Administrative Law Judge and Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX and XXXXX.

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 the first, third and fourth quarters of XXXXX.

3. The Petitioner requests a waiver of the penalty and interest associated with the late filing and late payment of the payroll withholding returns for the stated quarters. They were not filed and paid until XXXXX.

4. The position of the Petitioner is that many of the records were destroyed when a XXXXX was burned in XXXXX after someone had first broken into the XXXXX and destroyed much of the equipment and records.

5. The witnesses for Petitioner also state that Petitioner has received no prior notice of the delinquency until XXXXX, although they acknowledge that they were not the persons who would have received those notices in XXXXX or XXXXX.

6. The witnesses for Petitioner feel that the loss of those records in the later years is important, because they feel that some checks were written two times and they may have been required to pay the same tax twice, but they do not have any evidence of that issue, and it clearly amounts to speculation on their part.

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 Petitioner has not shown any probability that the amount of tax assessed against them is not correct. In addition, the destruction of some of the records more than two years after the delinquent returns were due and unpaid is not a factor to consider in waiving the penalty.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the first, third and fourth quarters of XXXXX. It is so ordered.

DATED this 6th day o 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