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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner