92-1510 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

) Appeal No. 92-1510

: 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. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX.

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 fourth quarter of XXXXX, the fourth quarter of XXXXX, the first and second quarters of XXXXX, fourth quarter of XXXXX and the first quarter of XXXXX.

3. For the fourth quarter of XXXXX and the fourth quarter of XXXXX, the Petitioner did not file its return until XXXXX. The Petitioner's representative testified that for those quarters he simply overlooked paying and filing the returns in a timely manner.

4. During the remaining periods, the Petitioner's representative testified that the company suffered cash flow problems. Because of those problems the Petitioner was not able to timely file and pay the taxes due. The Petitioner also testified that because of a lawsuit which the company was involved in, a $$$$$ account receivable was attached by the District Court and was not available to pay the necessary taxes.

5. As a result of the failure to timely file and pay the taxes due, the Petitioner was assessed penalties in the amount of $$$$$, $$$$$, $$$$$, $$$$$, $$$$$, $$$$$ plus interest for the respective quarters in question.

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

Under the facts of the present case, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties or interest associated with the withholding tax periods in question. Therefore, the Petitioner's request is denied. It is so ordered.

DATED this 12th day of November, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner