93-1632

Penalty & Interest

Signed 7/26/94

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, :

: ORDER

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 93-1632

UTAH STATE TAX COMMISSION, :

Respondent. : Account No. XXXXX

: Tax Type: Penalty & Interest

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Respondent was XXXXX. The Petitioner was not present or represented. The Appeals Division had received prior information indicating the Petitioners wanted a telephone settlement conference. However, the Petitioner had not called to provide information as to the number to telephone or the person to contact. Nevertheless, there was a telephone number on a prior letter, XXXXX. The Administrative Law Judge called that number and asked for both XXXXX, and Mr. XXXXX Supervisor of Division Orders and Government Tax Accounting. The Administrative Law Judge was informed that neither of those individuals were at that number, and in fact the Division had been transferred from Illinois to California, and was given the number of XXXXX to call to contact them. When that number was called, it was an electronic switchboard, and the Division which was listed was not one of those divisions which was shown for Mr. XXXXX. Therefore, based on the inability to contact any individual at XXXXX who had any knowledge about this matter, the settlement conference order is prepared and based upon the information contained in the file.

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 mineral withholding tax.

2. The period in question is second quarter XXXXX.

3. A penalty of 10% was imposed upon the Petitioner for late payment of the second quarter XXXXX mineral withholding tax.

4. The Petitioner, by letter, represented that the return was timely filed and included check number XXXXX which was dated XXXXX.

5. The Tax Commission does not have record for receipt of that check.

6. The Petitioner included a photocopy of the check in the amount of $$$$$, dated XXXXX, and they also included a photocopy of a certified mail receipt having being received by the Utah State Tax Commission on XXXXX, in which they state the check and return were both included. The return was received on that date by the Tax Commission.

7. The Petitioner represents that they have canceled the original check and stopped payment, and the replacement check was timely received after notification.

APPLICABLE 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 mineral withholding tax for the second quarter of XXXXX.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 26th day of July, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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