92-0009 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-0009

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. XXXXX, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was represented by XXXXX by telephone.

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 XXXXX and XXXXX quarters of XXXXX.

3. Petitioner filed and paid its XXXXX quarter XXXXX withholding tax three months late.

4. Petitioner filed and paid its XXXXX quarter XXXXX withholding tax three and a half months late.

5. As a result of the untimeliness, Petitioner was assessed two $$$$$ late penalties for each quarter plus interest and legal fees.

6. Petitioner was late paying $$$$$ for the XXXXX quarter XXXXX and $$$$$ for the fourth quarter XXXXX.

7. Petitioner's owner, XXXXX, testified that he hired his daughter, a recent high school graduate, to handle the bookkeeping for the business.

8. She was learning her job duties and responsibilities when she missed filing and paying the withholding taxes.

9. XXXXX testified that his daughter had the withholding coupon book, but didn't understand how to properly handle the taxes.

10. Previous to his daughter's employment as bookkeeper, XXXXX handled the taxes.

11. He felt that he probably should have more closely supervised his daughter.

12. XXXXX would prefer the Tax Commission to send him monthly notices rather than require him to remember to send in the withholding coupons.

13. Petitioner had been late once back in XXXXX.

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 of the penalties associated with the withholding tax for the XXXXX and XXXXX quarters of XXXXX. Interest is not waived. It is so ordered.

DATED this 12th day of January, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman