BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: )
:
XXXXX, XXXXX,
XXXXX, ) FINDINGS OF FACT,
XXXXX &
XXXXX, : CONCLUSIONS OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1807
: 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 administrator.
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 year XXXXX.
3. Petitioner was assessed a $$$$$ penalty for
failing to timely remit its W-2 forms on all of its employees for XXXXX.
4. These forms (also known as the annual
reconciliation report) were due to the Tax Commission by XXXXX.
5. Petitioner lost its office manager in late
XXXXX/early XXXXX.
6. Petitioner's new office manager then took
over, not knowing that the previous manager had not submitted the W-2 forms at
year's end in XXXXX.
7. On XXXXX, the Auditing Division sent
Petitioner a notice, requesting the necessary documentation within ten days.
8. When Auditing did not receive the records it
had requested, the $$$$$ penalty was attached.
9. Petitioner's office manager claims she sent
Auditing XXXXX W-2 forms instead of XXXXX.
10. By XXXXX, Petitioner and Auditing
straightened out the misunderstanding and Petitioner gave Auditing the XXXXX
reconciliation report.
11. Upon receiving the report, Auditing
conducted an audit and assessed Petitioners another $$$$$ for underreporting.
12. It is also interesting to note that
Petitioner was late filing its third and fourth quarter withholding returns for
XXXXX as well as the first quarter of XXXXX.
Petitioner does not dispute the penalty and interest assessments on
those quarters.
13. The Auditing Division claims that the $$$$$
penalty is in order as Petitioner did not respond to the first statutory notice
within ten days.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.
§59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the $$$$$ associated with the XXXXX
annual reconciliation report. The
remaining penalty amount ($$$$$) is not waived. It is so ordered.
DATED
this 25th 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