BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX, ) AND FINAL DECISION
) Appeal No. 92-1096
: Account No. XXXXX
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. Representing Petitioner by telephone was XXXXX, a certified public accountant.
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 and XXXXX through XXXXX.
3. Petitioner filed and paid its withholding taxes for the periods in question on XXXXX.
4. Petitioner employed an accountant for several years prior to the period in question. This accountant filed and paid the withholding taxes on a consistently timely basis.
5. In XXXXX, the accountant quit Petitioner. None of the employees left behind fully understood the withholding requirements.
6. XXXXX, a vice president with Petitioner, received late notices of demands for payment.
7. She and five other employees attempted to handle the payroll which included ten to fifteen full-time employees and many, many part-time employees.
8. Those persons doing the payroll had limited knowledge and understanding of withholding tax.
9. Petitioner hired XXXXX, a certified public accountant, near the end of XXXXX to handle its taxes.
10. The Internal Revenue Service abated its penalty assessed for the same period.
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 attempted to handle the payroll after its only experienced employee left. Petitioner should have realized that it was proceeding into unknown territory when it began juggling the payroll between the six employees who were not trained in tax. The receipt of the delinquent notices further informed Petitioner of the problem.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest on withholding tax for the periods in question. It is so ordered.
DATED this 20th day of August, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes