94-2143

Withholding
Signed 2/23/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-2143

:

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. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX, owner of XXXXX, and XXXXX, Administrative Assistant. Present and representing Respondent was XXXXX, Colleciton Division of Utah State Tax Commission.

This matter involves request for waiver of penalty and interest for XXXXX and XXXXX in conjunction with withholding tax. The penalty imposed for XXXXX was $$$$$ with approximately $$$$$ in interest. The penalty imposed for XXXXX was $$$$$ with approximately $$$$$ of interest. Petitioner indicated at the hearing that the Commission had failed to send the coupon booklet for XXXXX and XXXXX. During reconciliation of Petitioner's records at the end of the first quarter, it was discovered that this problem had occurred and Petitioner notified Tax Commission inquiring as to why no coupon booklet had been received. According to Petitioner, the advise was to pay for the full quarter and a booklet would be sent out. Petitioner did pay in a timely fashion for a quarterly payment.

Respondent indicated at the hearing that the testimony established that the petitioner had not received a coupon booklet. Payment was made before Petitioner had been issued a Notice from the Commission. Respondent suggested that the penalty be waived based on Commission error.

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 Annotated59-1-401(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 been shown to waive the penalty but not the interest assessed for XXXXX and XXXXX 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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