92-0866 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-0866

: Account No. XXXXX

_____________________________________

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. Representing the Petitioner by telephone was XXXXX, payroll tax manager.

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 and XXXXX.

3. In reference to XXXXX, Petitioner filed and paid its withholding tax one week late. The return and payment were mailed on XXXXX. A 10% penalty plus interest was assessed.

4. In reference to XXXXX, Petitioner filed and paid its withholding tax one week late also. A 10% penalty plus interest was assessed.

5. In XXXXX, Petitioner promoted one of its payroll clerks to payroll tax manager. At this time, Petitioner also transferred its accounting function from New York to California.

6. In reorganizing the payroll department, the new tax manager needed time to familiarize herself with the position as well as train new employees.

7. Petitioner could not find the coupon book for filing the withholding returns. Petitioner called the Tax Commission to have another one sent. In the meantime, Petitioner found the coupon book and mailed in the payment and return late.

8. Petitioner was late once before 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

Petitioner was late three times in XXXXX in filing and paying withholding taxes. Sufficient cause has not been shown to grant a waiver of the penalties and interest assessed. It is so ordered.

DATED this 20th day of August, 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