94-1611

Withholding

Signed 2/27/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1611

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Withholding

_____________________________________

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. 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.

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

FINDINGS

Petitioner appealed the $$$$$ penalty and $$$$$ in interest assessed for a late payment of withholding taxes for the month of XXXXX. The Collection Division Waiver Unit had denied Petitioner's request for waiver of the penalty and interest.

At the hearing Petitioner explained that because of the amount of the withholding it was required to file quarterly not monthly. In XXXXX Petitioner had explained to the Tax Commission that it wanted to start filing on a quarterly basis. Petitioner stated that they were told by Tax Commission employees they could file quarterly but to use the monthly preprinted coupons because of the time and expense in getting new quarterly coupons. Petitioner stated that since the Petitioner was only required to file quarterly the August payment in question was actually paid early.

Further, Petitioner stated there was a lack of following through on the part of Tax Commission employees in getting the mistake corrected. In response to Petitioner's numerous letters and phone calls several people told Petitioner that they would correct the error, but did not follow through.

At the hearing Respondent agreed with Petitioner that only quarterly payments were required. Respondent recommended that the penalty be waived because Petitioner had shown reasonable cause existed in that Petitioner had filed and paid on a timely basis and Tax Commission employees handling the matter had not followed up on a timely basis.

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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty and interest associated with the withholding tax and for the XXXXX period. It is so ordered.

DATED this 27 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.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46b-14(3)(a).)

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