94-1473

Withholding

Signed 2/15/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

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v. : Appeal No. 94-1473

)

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, )

Respondent. : Tax Type: Withholding

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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. Alice Shearer, Commissioner, heard the matter for and on behalf of the Commission. Representing Petitioner by telephone was XXXXX. Present and representing Respondent was XXXXX of the Collection Division.

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

FINDINGS

XXXXX handles tax matters for XXXXX, a sorority at Utah State University. For the third quarter the withholding was not filed as he thought there were no employees.

When the reconciliation was filed in XXXXX the error was discovered and the tax of $$$$$ remitted.

Respondent agrees that if the third quarter had been filed with a $$$$$ balance, no penalty would have been levied. However, both penalty and a lien fee are now attached plus interest.

Because of the previous good record of Petitioner and the small amount of tax owing, Respondent recommends waiver of one-half the penalty but not the lien filing fee.

APPLICABLE LAW

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(8).)

DECISION AND ORDER

This error was caught by the taxpayer during the annual reconciliation process and was paid by taxpayer without being billed. Taxpayer has met reasonable cause criteria. Waiver of all penalties, interest and the lien fee is granted. It is so ordered.

DATED this 15 day of February, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1-5A(P) and Utah Code Ann. '63-46b-15.)

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