94-1416

Withholding Tax
Signed 4/12/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1416

:

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 were XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ with interest of approximately $$$$$ for the XXXXX period, penalties of $$$$$ with interest of approximately $$$$$ for the XXXXX period and penalties of $$$$$ with interest of approximately $$$$$ for the XXXXX period were assessed against Petitioner relating to withholding tax. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. At the conference Petitioner's representatives explained that since early XXXXX withholding tax payments were made prior to the date they were due. In XXXXX Petitioner's bookkeeper was making payments at the same time as the payroll. No payments were ever late and Petitioner was always in a positive position. In fact, Petitioner's representatives stated, Petitioner was entitled to a refund for overpayment of withholding taxes in the amount of $$$$$. Petitioner's representatives thought that because the payments had been made earlier than the due date, the dates on the payment coupons did not match up so payments were credited incorrectly by the Tax Commission. Petitioner's representatives thought that this might be the reason why the penalties and interest were assessed.

Petitioner provide a complete withholding reconciliation for the XXXXX which supported Petitioner's statements. Further, Petitioner was concerned that a XXXXX on Petitioner's XXXXX XXXXX taxes.

Respondent, upon reviewing the withholding reconciliation, requested a continuance to have Account Resolution review the information.

Upon review of the information supplied by Petitioner, Account Resolution verified the information, determined that Petitioner had indeed made an overpayment of $$$$$ which would be refunded to Petitioner, waived the penalties and interest that are the subject of this appeal and removed the XXXXX for XXXXX XXXXX.

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 or reduce any remaining penalties and interest assessed relating to withholding tax for the XXXXX filing periods.

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 12th day of April, 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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