92-1665 - Withholding

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, : ORDER

:

v. : Appeal No. 92-1665

:

COLLECTION DIVISION OF THE : Account No.XXXXX

UTAH STATE TAX COMMISSION, : XXXXX

:

Respondent. : Tax Type: Personal Penalty

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Prehearing Conference which was converted to a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, onXXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX of the Collection Division.

This case represents a proposed personal penalty assessment against Petitioner for taxes withheld from employee wages by a corporation of which Petitioner was an officer and director, which taxes were not remitted to the Utah State Tax Commission.

Petitioner was examined by Respondent and it was determined that Petitioner was an officer and director, but did not have any control over the bank account, and was principally a friend of the owners of the business who assisted them in their bookkeeping. Petitioner testified that he merely acted as the third party to incorporate the business and to sometimes assist them with making out the payroll. However, the petitioner represented that he never prepared tax returns and was not responsible for such returns, and that he was not a signatory on the bank account and could not have made out checks to pay such taxes even if he had been aware of the same.

Respondent did not dispute the representations of Petitioner, and acknowledged that no actual assessment had ever been formally proposed against Petitioner.

DECISION AND ORDER

Based upon the information presented at the conference, the Commission finds that Petitioner was not responsible for such taxes during the period of the corporation, and determines that Petitioner was not liable for such taxes.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:


Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 6 day of January, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner