94-2146

Withholding
Signed 8/4/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, : ORDER

:

v. : Appeal No. 94-2146

:

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. Present and representing Respondent was XXXXX.

This matter involves penalty and interest assessed for XXXXX through XXXXX and XXXXX through XXXXX. Petitioner withdrew any objection to the penalty and interest imposed for XXXXX through XXXXX. The focus of the hearing was on the period from XXXXX through XXXXX. Petitioner explained that he had been filing on a quarterly basis despite the fact that the Commission had placed the Petitioner on monthly filing due to the fact that Petitioner had exceeded the $$$$$ per month limit during the XXXXX year.

Petitioner referred to a telephone conversation with an employee of the Tax Commission in mid XXXXX expressing a desire to change to quarterly filings. According to Petitioner the Tax Commission employee stated that there would be a review of the petitioner's records to see if the qualifications were met for quarterly filing and if so a new booklet would be sent. No new booklet was forthcoming. This is consistent with the fact that Petitioner did not qualify based on the monetary amounts filed for XXXXX. Nevertheless, Petitioner continued to file on a quarterly basis.

For the months in issue during XXXXX, that is January through May, Petitioner also filed on a quarterly basis. However, based on Petitioner's average monthly filings for XXXXX, Petitioner did qualify for quarterly filing in XXXXX.

Respondent has recommended that the penalty and interest be waived for the period from January through May of XXXXX, since Petitioner did qualify for quarterly filings in that year. No such justification exists, however, for July through December of XXXXX.

The amounts in issue for the last six months of XXXXX are approximately $$$$$ in penalties and $$$$$ in interest.

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(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 April through June of XXXXX and July through December of XXXXX. However, the Commission finds sufficient cause has been shown to waive the penalties and interest assessed for the period for January XXXXX through May 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 4 day of August, 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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