94-1413
Withholding
Signed 3/28/95
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 94-1413
:
COLLECTION
DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
:
Respondent. : Tax Type: Withholding
_____________________________________
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
in the amount of $$$$$ and interest of approximately $$$$$ were assessed
against Petitioner relating to withholding tax for the XXXXX filing
period. The underlying amount of
withholding tax owed for this period was $$$$$. Petitioner had requested a waiver of the penalties and interest
from the Collection Division Waiver Unit which was denied. Petitioner is appealing this denial.
At
the conference Petitioner's representative stated that Petitioner had
inadvertently overlooked the timely filing of the XXXXX withholding tax. As
soon as Petitioner realized the error
Petitioner corrected it. The
correction was made within XXXXX of the filing due date.
Respondent
stated that Petitioner had corrected the error prior to any notice from the Tax
Commission and Petitioner had an excellent payment history at the Tax
Commission. For these reasons
Respondent recommended waiver of the penalty.
In
considering Petitioner's request for waiver or reduction of the interest the
Tax Commission applies more stringent reasonable cause standards because
Petitioner continued to enjoy the benefit of the use of the funds and the State
of Utah was denied the benefit of the use of the funds from the time the
underlying taxes were due until they were actually paid by Petitioner.
DECISION AND ORDER
Based
upon the information presented at the conference, and the records of the Tax
Commission, the Commission finds sufficient cause has been shown to waive the
penalties of $$$$$ assessed for the XXXXX withholding tax. Sufficient cause has not been shown to waive
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 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
^^