Signed 3/28/95


                                     BEFORE THE UTAH STATE TAX COMMISSION




Petitioner,                                 )           INFORMAL DECISION


v.                                                                     )


COLLECTION DIVISION OF THE              )           Appeal No. 94 -1442

UTAH STATE TAX COMMISSION,            :                      

)           Account No. XXXXX


Respondent.                             )           Tax Type:  Withholding



                                                          STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings.  An informal hearing was held 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 of XXXXX.  Present and representing Respondent was XXXXX from the Legal Unit of the Collection Division.

Based upon the evidence and testimony in the file and presented at the informal hearing, the Commission makes its:


Penalties in the amount of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to withholding tax for the third quarter of XXXXX.  Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.   Petitioner now appeals this denial.

                        At the conference Petitioner's representative said that XXXXX, a  firm of Certified Public Accountants, prepared and filed Petitioner's tax returns and had inadvertently overlooked the quarter in question.  Petitioner's representative who worked for the accounting firm, stated, at the conference and by letter, that it was in no way the fault of the taxpayer but an error on the part of the accounting firm.

Respondent stated that other than the quarter at issue Petitioner had an excellent payment history with the Tax Commission and that Petitioner's reliance on a competent tax advisor was sufficient reasonable cause to waive the penalty.   


The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause.  (Utah Code Ann. '59-1-401(10).)

                                                         DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty  of $$$$$ relating to withholding tax for the third quarter of XXXXX.

DATED this 28 day of March, 1995.


W. Val Oveson                                                                        Roger O. Tew

Chairman                                                                                  Commissioner


Joe B. Pacheco                                                                        Alice Shearer

Commissioner                                                               Commissioner


NOTICE:  You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission.  If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court.  (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ' 63-46b-15.