BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
XXXXX, )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
AUDITING
DIVISION OF THE ) Appeal No. 92-0992
UTAH STATE TAX
COMMISSION, :
) Account
No. XXXXX
Respondent. :
____________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a prehearing conference on
XXXXX. Alan Hennelbold Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX, owner. XXXXX, Assistant Utah
Attorney General represented Respondent.
With
the consent of the parties, the prehearing conference was converted to a formal
hearing on the merits of Petitioner's appeal.
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 period in question is XXXXX through
XXXXX.
3. Petitioner was incorporated during XXXXX.
Ceased doing business during XXXXX.
4. For the XXXXX tax year, Petitioner properly
withheld tax from its employees' wages and remitted the same to the
Commission. However, in winding up
Petitioner's tax affairs in connection with its cessation of business,
Petitioner's accountant failed to file copies of Petitioner's W-2 forms for
XXXXX, and also failed to file a withholding tax reconciliation form (TC-96)
for that year.
5. An office audit of Petitioner's withholding
tax liability was conducted by Tax Commission staff in late XXXXX. Because Petitioner had failed to submit
copies of its W-2 forms or file its TC-96, a penalty of $700 was imposed. Upon production of the required documents,
the penalty was reduced to $310.
6. Commission records indicate Petitioner has
properly filed and paid its withholding tax liability for the other periods of
its existence, with the exception of minor penalties imposed for the 3rd and
4th quarters of 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
While
Petitioner admittedly failed to properly submit the required W-2 forms and
TC-96 for the period in question, its omission is mitigated by the inadvertent
nature of the error, the fact that it had paid the tax actually due, and the
additional fact that the mistake occurred in the course of Petitioner's
cessation of business activity.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown to waive the penalty associated with Petitioner's XXXXX withholding tax
liability. It is so ordered.
DATED
this 28th day of October, 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