BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 91-1442
UTAH STATE TAX COMMISSION, :
: Account
No. XXXXX
Respondent. : Tax Type: Withholding
_________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
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 third and
fourth quarters of XXXXX.
3. Petitioner filed its third quarter XXXXX
withholding tax return with payment in the amount of $$$$$ XXXXX late.
4. Petitioner filed its fourth quarter XXXXX
withholding tax return with payment in the amount of $$$$$ a week late.
5. Petitioner was assessed a ten percent
penalty for each quarter, plus interest.
6. In XXXXX, Petitioner switched its payroll
from an outside payroll service to in house.
A new employee was trained during the XXXXX to handle the payroll. She was supervised by XXXXX.
7. XXXXX saw the withholding tax checks for the
quarters in question when they were ready for mailing.
8. XXXXX later learned that the new payroll
clerk had failed to mail the checks timely.
She did not understand that failure to send them on time caused
significant penalties for Petitioner.
The payroll clerk had paid other bills before sending out the
withholding tax checks.
9. Petitioner has been late in filing and
paying withholding taxes in the past for other reasons. Petitioner was attempting to clear up
bookkeeping problems by moving the payroll in house when this occurred.
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 not been
shown which would justify a waiver or reduction of the penalties assessed or
the third and fourth quarters of XXXXX.
It is so ordered.
DATED
this 13th day of February, 1992.
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