94-1447

Withholding Tax
Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1447

:

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 was XXXXX. Present and representing Respondent was XXXXX.

Penalties totaling $$$$$ and interest totaling approximately $$$$$ were assessed against Petitioner relating to withholding tax for the XXXXX and the 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 stated that their XXXXX in XXXXX. Further, Petitioner was unable to continue in the XXXXX and was unable to XXXXX by many of its customers. This left Petitioner unable to pay the withholding taxes. Petitioner struggled financially during the periods in question. Petitioner's representative stated that Petitioner's XXXXX and often received XXXXX so the business could survive. Petitioner's representative stated that Petitioner has now paid all the taxes it owed for the periods in question and has remained current on tax payments. Petitioner's representative stated that requiring payment of the penalties and interest will create a severe financial hardship for Petitioner.

Respondent stated that financial hardship is not a criteria that fits under the reasonable cause guidelines for waiver of penalties or interest.

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 or reduce the penalties totaling $$$$$ or interest of approximately $$$$$ assessed relating to withholding tax for the XXXXX.

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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