94-1333

Withholding Tax
Signed 1/11/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1333

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Withholding Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.

The petitioner is requesting a waiver of penalty and interest for the XXXXX regarding withholding tax. The petitioner explained at the hearing that an XXXXX was in charge of withholding tax for XXXXX and thus Petitioner had closed out the withholding number. While Petitioner resumed the responsibilities in XXXXX it failed to reactivate the withholding number. The failure to reactivate the number resulted in no Notices being sent to Petitioner. Petitioner indicated at the hearing that the failure to receive the Notices prevented Petitioner from being aware that XXXXX were necessary and therefore were not made. Petitioner assumed that no Notices were being received was that there was an annual rather than a quarterly filing requirement. It was not until XXXXX that Petitioner became aware that it was a quarterly requirement. The Collections Division waived penalty for the XXXXX. Viewing each quarter as a separate and distinct filing period, the Collections Division indicated that the reasonable cause criteria of first time error did not apply to the XXXXX XXXXX.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties and interest assessed for the 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 11th day of January, 1995.

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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