Withholding Tax

Signed 3/22/95






Petitioner, : ORDER


v. : Appeal No. 94-1443





Respondent. : Tax Type: Withholding Tax



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.

Penalties of $$$$$ and approximately $$$$$ in interest were assessed against Petitioner resulting from an audit of Petitioner's withholding tax for the audit period of XXXXX. Upon completion of the audit, the additional amount of withholding tax that the Auditing Division required Petitioner to pay was $$$$$. Petitioner had requested waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the conference Petitioner's representative stated that in XXXXX upon completion of an audit the Auditing Division required Petitioner to pay an additional amount of withholding tax. When Petitioner received notice of the result of the audit she went to the Tax Commission in person and spoke with someone in the Auditing Division who told Petitioner's representative that if Petitioner paid the additional tax the penalty and interest would be waived. Petitioner made arrangements with this person in auditing to pay the additional $$$$$ owed in XXXXX of $$$$$, each and the Auditing Division would then let her know the exact payoff amount. Petitioner did pay the XXXXX of $$$$$ and expected to hear back from the Auditing Division. Since they did not contact her she forgot about the XXXXX.

Petitioner's representative stated that XXXXX later Petitioner was notified that it owed penalties and interest. Petitioner then immediately paid the $$$$$. Petitioner's representative voiced her frustration at then making several phone calls and letters to the Auditing Division with several people saying they would take care of the matter but then failing to follow through.

Respondent stated Petitioner's account history with the Tax Commission indicated that there were other late filing periods. Respondent stated that Petitioner did not have sufficient cause to waive penalties or interest.

Petitioner's representative stated that she had some late withholding tax filings because for the XXXXX she had written and requested to be returned from XXXXX filing status because of the decrease in the amount of Petitioner's withholding. Petitioner did not receive any response so she started filing XXXXX and made all filings timely on a XXXXX. The Tax Commission did not change Petitioner's filing status until XXXXX.

Petitioner's representative stated that Petitioner had relied on representatives from the auditing division who told her the penally and interest would be waived if Petitioner paid the additional tax. Further, Petitioner's representative stated that Petitioner had relied on employees in the Auditing Division and other Tax Commission employees who said they would take care of the matter, then failed the follow through. Petitioner did not see why it should take XXXXX before the Tax Commission notified her about the penally and interest, which caused further interest to accrue.


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 of $$$$$ or interest assessed for withholding tax for the XXXXX audit 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 22nd day of March, 1995.


W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner