94-1411

Withholding Tax

Signed 3/28/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1411

:

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 by telephone conference call was XXXXX XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to withholding tax for the XXXXX filing period. The amount of the underlying tax owed for that period was $$$$$. Petitioner had requested a waiver of the penalties and interest from the Collection Division waiver unit which was denied.

At the conference the representative for Petitioner stated that Petitioner had mailed timely, on XXXXX, the filing in question. It was Petitioner's experience that it often took XXXXX for the checks written to the Tax Commission to clear its bank. In XXXXX Petitioner realized that the check still had not cleared its bank. On XXXXX Petitioner called the Tax Commission and was told that the Tax Commission had not received the filing in question. The Tax Commission employee on the phone told Petitioner to place a stop payment on the check, and to send right away a new check and a copy of the stop payment. Petitioner's representative stated that the Tax Commission employee told them that if they did this right away there would be no problem. Petitioner completed the actions requested by the Tax Commission employee that same day.

Respondent stated that it was the Tax Commission who first discovered the Petitioner's error. Respondent stated that the Tax Commission sent notice to Petitioner of failure to file for the period in question on XXXXX and on XXXXX the Tax Commission received the filing and the payment. Further, Respondent stated that Petitioner had a history of late payments. For these reasons Respondent felt the Petitioner had not demonstrated reasonable cause.

Petitioner disagreed with Respondent but prematurely ended the conference before further clarification could be made.

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 withholding tax 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 28th 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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