93-0472

Withholding

Signed 8/13/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

)

XXXXX, ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

) AND FINAL DECISION

)

) Appeal No. 93‑0472

) Account No. XXXXX

_____________________________________

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's XXXXX withholding tax return was filed timely on XXXXX. The tax due in the amount of $$$$$ however was not paid until XXXXX.

4. The Petitioner's XXXXX withholding tax return was not filed nor paid until XXXXX. The tax due for that period was $$$$$.

5. As a result of the late payment for the XXXXX withholding tax return and the late filing and payment for the XXXXX withholding tax return, penalties in the amount of $$$$$ and $$$$$ were imposed for the respective periods.

6. The Petitioner's representative testified that he didn't recall the exact circumstances and facts which led to the late payments and filing, however, those problems were caused either directly or indirectly by the financial struggles the company has been undergoing for the last several years.

7. The Petitioner is a manufacturer of medical equipment. Some of its primary products involve equipment used to treat cancer through a XXXXX. Because of cut‑backs made in medicare reimbursement for medical procedures utilizing equipment manufactured by the Petitioner, sales have been drastically reduced which, in turn, has led to a severe cashflow problem.

7. The Petitioner filed a request for waiver of the penalties and interest associated with this case. By subsequent Commission action, the penalty was reduced to a total amount of $$$$$ for the two periods in question. The request to waive the interest was denied.

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

Although the Commission can sympathize with the economic problems the Petitioner has found itself in, those factors alone do not constitute reasonable cause to further waive or reduce the penalties and interest imposed for the periods in question.

Therefore, based upon the foregoing, it is the order of the Commission that the Petitioner's request to further waive or reduce the interest and penalties associated with the XXXXX and XXXXX withholding tax returns is denied. It is so ordered.

DATED this 13 day of August, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63‑46b‑13(1), 63-46b-14(2)(a).

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