94-1613

Withholding

Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1613

:

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 were XXXXX, XXXXX and XXXXX. Present and representing Respondent was XXXXX.

Penalties totalling $$$$$ and interest totalling approximately $$$$$ were assessed against Petitioner relating to withholding tax for the XXXXX of XXXXX, the XXXXX quarters of XXXXX and the XXXXX of XXXXX.

Penalties totalling $$$$$ and interest totalling approximately $$$$$ were assessed against Petitioner relating to sales tax for the XXXXX, the XXXXX and the XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the conference Petitioner's representatives stated that Petitioner is a small business. One bookkeeper/office staff employee handled all tax filings. XXXXX, the owner, and manager stated that he did not know how much Petitioner owed in sales and withholding taxes and did not understand how much the penalties and interest would be for paying these taxes late. When XXXXX understood the situation he borrowed all the money he could to pay taxes owed by Petitioner. Then Petitioner learned that penalties and interest were assessed. Petitioner's representatives stated that requiring Petitioner to pay the penalties and interest would create a severe financial hardship for Petitioner.

Respondent stated that neither ignorance of the law and filing obligations, nor financial hardship rise to the level of reasonable cause sufficient to waive penalties and 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 and interest assessed for the sales and withholding tax for the quarters in XXXXX through XXXXX listed above.

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 28 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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