94-1365

Withholding

Signed 5/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1365

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Withholding Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An informal hearing was held on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Although notice of the date, time and location of the hearing had been duly given to Petitioner, Petitioner did not attend the hearing. Present and representing Respondent was XXXXX.

Based upon the evidence and testimony presented at the informal hearing, the Commission makes its:

FINDINGS

Penalties in the amount of $$$$$, a lien filing fee in the amount of $$$$$ and interest in the amount of approximately $$$$$ were assessed against Petitioner relating to the late payment and filing of withholding tax for the second quarter of XXXXX. Penalties in the amount of $$$$$$ and interest in the amount of approximately $$$$$ were assessed against Petitioner relating to the filing of withholding tax for the fourth quarter of XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

From the letter submitted by Petitioner it was clear that Petitioner had a misunderstanding about how to file the quarterly withholding payments. Respondent stated that the second quarter of XXXXX withholding was Petitioner's first quarterly filing and recommended that the penalties be waived for that quarter as a first time filing error. Respondent did not recommend further reduction because Respondent stated that it is Petitioner's responsibility to learn and follow the correct filing procedures.

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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty of $$$$$ relating to withholding tax for the second quarter of XXXXX. Sufficient cause does not exist to waive or reduce the $$$$$ penalty associated with the fourth quarter of XXXXX nor the interest for either the second or fourth quarters of XXXXX.

DATED this 28 day of March, 1995.

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 a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. '63-46b-15.)

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