94-1607

Royalty Withholding

Signed 2/23/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1607

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Royalty 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. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX, XXXXX. Present and representing Respondent was XXXXX of the Collection Division of the Utah State Tax Commission.

This matter involves a penalty imposed of $$$$$ for which Petitioner is making a refund request. The penalty results from late filing and payment of XXXXX XXXXX taxes for XXXXX. Payment was due XXXXX. Payment was made XXXXX in conjunction with reconciliation for the year of XXXXX. Although the circumstances in this case appear to justify both a late filing and a late payment penalty, only a single penalty was imposed. Petitioner referred to a computer problem and lack of awareness of the entire procedure which led up to the late payment. Respondent indicated at the hearing that the grounds submitted by Petitioner did not rise to the level of reasonable cause criteria established by the Commission to justify waiving the penalty.

APPLICABLE LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a shoeing of reasonable cause. Utah Code Annotated §59-1-401(8).

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 the penalties and interest assessed for the fourth quarter of 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 23 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

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