92-1750 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, M.D., ) AND FINAL DECISION

:

) Appeal No. 92-1750

: 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. XXXXX, Petitioner's office manager, represented Petitioner by telephone.

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 period in question is the first quarter of XXXXX.

3. Petitioner's wife, XXXXX, handles the bookkeeping for her husband's medical office.

4. Ms. XXXXX explained that "I, as a mortal, merely forgot" to file and remit the withholding tax due on the quarter in question.

5. The return and payment were due XXXXX; they were not received at the Tax Commission until XXXXX.

6. Petitioner feels that the ten percent penalty assessment is excessive under the circumstances. Ms. XXXXX believes that a reminder notice would have helped Petitioner avoid the penalty and interest assessments.

7. Petitioner was late one other time in XXXXX when Ms. XXXXX missed the filing because of her sister's death. Petitioner paid a penalty at that time.

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

A ten percent negligence penalty is appropriate when the taxpayer has failed to pay taxes and a reasonable investigation into the applicable rules and statutes would have revealed that the taxes were due.

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 assessments associated with the first quarter XXXXX withholding tax. It is so ordered.

DATED this 18th day of February, 1993.

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