94-1452

Withholding

Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1452

:

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 was XXXXX. Present and representing Respondent was XXXXX.

Penalties in the amount of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to withholding tax for the XXXXX filing period. Petitioner had requested a waiver of the penalties and interest from the collection division waiver unit which was denied. Petitioner now appeals this denial. The underlying amount of withholding tax owed for the period in questions was $$$$$.

At the Settlement Conference the Petitioner stated that he had mailed timely the withholding tax return for XXXXX along with a check for payment of the tax. He did not know that there was a problem until XXXXX when he was notified by the Tax Commission that they had not received the check. Petitioner's representative stated that XXXXX Petitioner had checked its records, verified with its bank that the check had not cleared and sent a new check to the Tax Commission.

At the conference Respondent stated that if Petitioner could provide verification of when the original check was written and that there were funds available to cover the check then Respondent would recommend waiving the penalty.

Petitioner was given XXXXX to provide the verification requested by Respondent. During this time period Petitioner did provide further documentation.

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 relating to withholding tax for the XXXXX filing period. 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

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