BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-1425
: Account
No. ______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Paul F. Iwasaki, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were
XXXXX, 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 XXXXX through
XXXXX, XXXXX through XXXXX of XXXXX, XXXXX through XXXXX of XXXXX, XXXXX
through XXXXX and XXXXX through XXXXX.
3. On approximately XXXXX, the President of the
company was informed by the controller that the company was delinquent in
paying its withholding tax for the periods in question to the extent of
approximately $$$$$.
4. Prior to receiving that information, the
officers of the corporation were unaware that the withholding tax returns had
not been filed nor paid as required.
5. After some investigation, it was discovered
that the prior controller who served the corporation from XXXXX through the
first part of XXXXX, had deliberately failed to file and pay the returns in
question.
6. It was discovered that the former controller
would have the returns prepared and the payment checks signed, however, would
simply fail to remit the returns and payments.
The controller took the checks and kept them at his residence.
7. The officers of the corporation were unaware
of the controllers activities. The
controller hid such facts from them by falsifying all internal accounting
records and reports so that it appeared that the taxes were paid and the accounting
books of the corporation were in balance.
He also concealed any notices sent by the Tax Commission regarding the
delinquencies.
8. The motives of the controller for his
activities were not known. The controller did not convert the funds to his own
use.
9. The original checks were recovered from the
former controller, and a letter signed by the controller admitting to his
activities, was received into evidence.
10. During the periods in question, the
Petitioner had sufficient funds in its account or available to it through a
line of credit to cover the withholding taxes in question.
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
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalties associated with the
withholding tax periods in question. No
waiver of the assessed interest was requested.
Therefore, interest is to be calculated at the statutorily imposed
rate. 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