93-1666

Withholding

Signed 5/13/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

XXXXX INC., :

)

Petitioner, :

) FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW,

) AND FINAL DECISION

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, ) Appeal No. 93-1666

:

Respondent. ) Account No. XXXXX

_____________________________________

 

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, secretary.

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 the months XXXXX and XXXXX.

3. According to Tax Commission records, Petitioner had been assessed late filing and late payment penalties for the months XXXXX, XXXXX, XXXXX and XXXXX. The Commission later abated the penalties for the months XXXXX and XXXXX.

4. Petitioner is seeking a waiver of the penalties and interest for the remaining two months.

5. According to XXXXX, a secretary at XXXXX, the corporation's payroll is handled by an outside company called XXXXX (XXXXX).

6. As far as she has been able to ascertain, XXXXX had a problem when it was required to switch from filing quarterly returns to monthly returns.

7. The Tax Commission allowed some leeway in this new monthly procedure and waived the penalties on the initial months that this went into effect. The Commission, however, had refused to waive the penalties on the months in question because the problem continued to reoccur.[1]

8. Ms. XXXXX had tried to contact XXXXX for an explanation and was unsuccessful in her attempts to get an answer. In the meantime, she appeared at the formal hearing to handle this appeal that Petitioner filed.

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

Petitioner has not presented any evidence or testimony that would further enlighten the Tax Commission on the circumstances of this appeal.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties and interest associated with the withholding tax due on the months of XXXXX and XXXXX XXXXX. It is so ordered.

DATED this 13th day of May, 1994.

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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    [1]Petitioner had filed the XXXXX and XXXXX withholding returns at the end of the second quarter of that same year.