94-1615

Withholding

Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1615

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Withholding Tax

_____________________________________

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. Although duly notified of the time, date and instructions for appearing at the telephone hearing, Petitioner failed to appear in person or by telephone. Present and representing Respondent was XXXXX.

Based upon the evidence and testimony in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

Penalties in the amount of $$$$$ were assessed against Petitioner relating to Petitioner's withholding tax for the first quarter of XXXXX. No interest was assessed. Petitioner had requested a waiver of the penalties from the Collection Division Waiver Unit which was denied. The amount of the underlying withholding tax owed by Petitioner was $$$$$.

In Petitioner's letter submitted with the appeal Petitioner stated that he was not aware that the Tax Commission had not received his check and filing for the period in question until he received notice from the Tax Commission. Petitioner then sent in a new check. Petitioner enclosed with the letter a copy of his check register indicating the original check had been issued in sequence on XXXXX, a copy of the duplicate check, a copy of the replacement check and bank statements indicating that funds were available for the check to clear. Further, Petitioner states that he did not receive notice of the Collection Division Waiver Unit's decision denying his waiver request.

At the hearing Respondent stated that Petitioner did not file the necessary form or pay the withholding tax at issue until XXXXX. This was after the Tax Commission had sent notice on XXXXX of failure to file. Respondent stated that this meant Petitioner had not caught the error prior to notice from the Tax Commission. Further, Respondent stated the Petitioner had a prior history of making late quarterly payments. He had several late payments or filings after XXXXX. For these reasons Respondent stated Petitioner had not shown sufficient reasonable cause to waive the penalty.

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 not exist to waive the $$$$$ penalty for withholding tax for the first quarter of XXXXX.

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

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. '63-46b-15.

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