94-1366

Withholding Tax

Signed 3/15/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1366

:

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. Jane Phan, 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.

Penalties of $$$$$ and interest of $$$$$ were assessed against Petitioner relating to XXXXX withholding taxes for XXXXX. The underlying amount of the XXXXX withholding tax was $$$$$. Petitioner had requested a waiver of the penalties from the Collection Division Waiver Unit which was denied.

At the conference Petitioner stated that he had made an inadvertent, honest, error in that he forgot to file his XXXXX XXXXX withholding tax. As soon as the Tax Commission notified Petitioner of his failure to file, Petitioner filed and made the necessary payment. Petitioner stated that this was the first error he had made in XXXXX of filing. Petitioner was not appealing the interest assessment. Further, Petitioner stated that the penalties were excessive. He stated that he thought the penalties should be only $$$$$.

Respondent stated that Petitioner did have a good filing and payment history but had some concerns about his filing withholding with $$$$$ amounts for the XXXXX of the year and the XXXXX during the XXXXX. Petitioner stated that this was done because he was the XXXXX and he XXXXX XXXXX in XXXXX. Respondent stated that Petitioner did pay the amount due as soon as he was notified of the error.

Respondent stated that Petitioner's statements did not rise to the level of reasonable cause and the penalties were validly assessed according to Utah law. Respondent would not recommend waiving and of the penalties.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to reduce the penalties assessed for the XXXXX tax period to only the XXXXX late penalty, resulting in a penalty of $$$$$. Petitioner did not request waiver of the interest.

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 15th 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

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