93-1410

Withholding

Signed 11/23/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-1410

: 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 period in question is XXXXX.

3. In XXXXX of XXXXX it was discovered that the Petitioner's bookkeeper had been embezzling monies from the company and had not been making payments as necessary.

4. On or about XXXXX, the bookkeeper was fired. She was later charged and convicted of third degree theft in the district court.

5. The bookkeeper was replaced by the Petitioner's representative's wife who assumed the responsibilities for filing and paying the necessary tax returns. The wife was not familiar with all the filing requirements and inadvertently filed the XXXXX returns late.

6. The XXXXX withholding tax return was filed and paid on XXXXX. As a result of the late filing and payment, a penalty in the amount of $$$$$ plus interest was assessed.

7. The Petitioner requested a waiver of the penalty and interest associated with the period in question. The Petitioner testified that their problems with respect to that period were the direct result of the problems caused by their bookkeepers criminal activities.

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 penalty associated with the XXXXX withholding tax. The Petitioner's request to waive the interest associated with that period, however, is denied. It is so ordered.

DATED this 23rd day of November, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. 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(3)(a).

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