94-1368

Withholding Tax

Signed 2/27/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1368.

:

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.

Petitioner is appealing the penalty in the amount of $$$$$ and interest in the amount of approximately $$$$$ that was assessed against Petitioner relating to withholding taxes for the XXXXX period.

From the statements of Petitioner and Respondent at the conference it was apparent that in XXXXX the Tax Commission changed Petitioner's status from XXXXX of withholding tax to XXXXX. However, both parties agreed that Petitioner did not get notice of this change or a XXXXX until after the due date for the XXXXX filing period. Petitioner stated that he filed a XXXXX return timely on XXXXX and that it was not until XXXXX that they were told to file XXXXX. Since there was no way for the Petitioner to have known he needed to file XXXXX in time to file timely and the fact that the Petitioner had a good payment history, the Respondent recommended waiving the penalty.

The Petitioner further requested a waiver of the interest as it appeared the interest was assessed because of the way a Tax Commission employee had entered Petitioner's XXXXX filing as XXXXX in which the employee had entered the entire amount of the XXXXX XXXXX tax liability as the XXXXX filing and listed $$$$$ filings for XXXXX. This automatically caused interest to accrue because the record showed the XXXXX payment was not made until XXXXX. Petitioner maintained he made the payment timely so should not be required to pay any interest.

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 waive the $$$$$ in penalties and the $$$$$ in interest assessed relating to the Petitioner's withholding tax for the XXXXX period.

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 27th day of February, 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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