92-1638 - Income

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX INC., ) AND FINAL DECISION

:

) Appeal No. 92-1638

: 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. Present and representing the Petitioner was XXXXX, Petitioner's office manager.

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 months in question are August XXXXX and September XXXXX.

3. Petitioner's office manager, XXXXX, receives a monthly coupon from XXXXX, the company that handles Petitioner's payroll, indicating the amount of withholding tax Petitioner must remit to the state.

4. In this case, Ms. XXXXX somehow mixed up the August, September and October XXXXX coupons. She sent in the September coupon for August, the October coupon for September and the August coupon for October. The amount of the corresponding payment reflected the amount shown on the coupon.

5. Apparently, because these coupons reflected different months other than the month currently due, the Tax Commission became confused.

6. In any case, by the end of November XXXXX, Petitioner did pay all of the withholding taxes due for August, September and October XXXXX, but not in proper order.

7. Ms. XXXXX did try to straighten out the problem as she was equally confused as to what happened.

8. She attempted to pay the penalty and interest assessments by check, but the waiver department refused, saying it would be taken care of.

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 been shown which would justify a waiver of the penalty and interest assessments on withholding tax due for the months August and September XXXXX. It is so ordered.

DATED this 7th day of January, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner