92-1841 - Withholding

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1841

:

_____________________________________

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 XXXXX and XXXXX.

3. The Petitioner filed and paid its XXXXX withholding tax on XXXXX, approximately seven days late. The filing and payment were made late because the person who had been responsible for making such payments had been replaced. The new person responsible was unaware of the time requirements and thus was late in filing and paying the withholding tax for that period.

4. The Petitioner filed and paid its XXXXX withholding tax on XXXXX, approximately seven days late. The filing and payment were late because the Petitioner had a policy which required two signatures on checks drawn in excess of ten thousand dollars. In this case, both individuals whose signatures were required on the check were out of town when the return became due.

5. For the XXXXX period, the Petitioner had a withholding tax liability in the amount $$$$$. The Petitioner was assessed a penalty in the amount of $$$$$ plus interest for the late payment and filing.

6. For the XXXXX period, the Petitioner had a withholding tax liability of $$$$$. The Petitioner was assessed a penalty in the amount of $$$$$ plus interest for the late payment and filing.

7. The Petitioner's representative testified that the Petitioner has changed its procedures to help eliminate the problem. Specifically, the Petitioner is now issuing the checks earlier and have also allowed a signature stamp to be used in place of the required signatures in the event that such is necessary to avoid a late filing.

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 not been shown which would justify a waiver of the penalty and interest associated with the periods in question. Therefore, the request of the Petitioner is denied. It is so ordered.

DATED this 25th day of February, 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