92-1387 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1387

: 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. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, corporate secretary.

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 first three quarters of XXXXX.

3. Petitioner operated a sole proprietorship until December XXXXX when it incorporated. Up until that time, the owner filed and paid his taxes on a year-end basis.

4. After the business incorporated, Petitioner began receiving information from the I.R.S. and Job Service. At some point in XXXXX, Petitioner contacted the Tax Commission to ascertain filing requirements.

5. The Tax Commission told Petitioner to wait until it received the withholding coupons before filing; otherwise, the Commission wouldn't know what to do with the money sent.

6. Knowing that some amount would be due in withholding taxes, Petitioner withheld ten percent of the two employees' paychecks while awaiting receipt of the coupons.

7. The coupons arrived in XXXXX whereupon Petitioner promptly sent in the first three quarters' returns and payments on December 12th.

8. Petitioner was assessed late filing and late payment penalties on each of the three quarters, plus interest.

9. The Tax Commission previously reduced the total penalty assessment amount to $200.

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 remaining penalties associated with the periods in question. Interest is not waived. It is so ordered.

DATED this 6th day of November, 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