95-0902
Withholding
Signed 8/17/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioner, ) INFORMAL
DECISION
:
v. )
:
COLLECTION DIVISION
OF THE ) Appeal
No. 95-0902
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. Present and representing Petitioner by telephone conference call
was XXXXX. Present and representing
Respondent was XXXXX.
Based upon the
evidence in the file and presented at the Informal Hearing, the Commission
makes its:
FINDINGS
Penalties of $$$$$ and
interest of approximately $$$$$ were assessed against Petitioner relating to
withholding tax for the fourth quarter of XXXXX. The underlying amount of the withholding tax owed for the quarter
in question was $$$$$. Petitioner had requested
a waiver of the penalties and interest from the Collection Division Waiver Unit
which was denied. Petitioner now
appeals the penalty.
At the hearing Petitioner
explained that he was self employed and on XXXXX he severely broke his ankle,
was hospitalized and bedridden for two weeks.
In January of XXXXX he was only able to work three or four hours per
day. He stated that January was a very
busy month and being able to work only part time he struggled to complete work
for his clients. This left him unable
to mail out bills, perform collection tasks, or file his own tax forms. To make matters worse for Petitioner he came
down with pneumonia at the end of January.
Petitioner
filed the subject withholding return on XXXXX.
However, at that time, because of his inability to perform collection
tasks, he did not have the funds to pay the withholding taxes. Petitioner made a $$$$$ payment in March of
XXXXX and paid the remainder in April of XXXXX.
Respondent pointed
out that Petitioner's reason for late payment was financial difficulty which is
not accepted as reasonable cause for the purpose of waiving penalties and
interest. Respondent stated that this
was indicated by the fact that Petitioner was able to file the return a couple
of weeks late but was not able to pay all of the taxes until April of
XXXXX. However, Respondent stated that
because the financial difficulty was in part due to Petitioner's accident and
ensuing illness, and that this was the first error on the part of Petitioner,
the penalty should be reduced to $$$$$.
Respondent stated that the interest should not be waived because the
error was on the part of the Petitioner and not the Tax Commission or a Tax
Commission employee.
APPLICABLE
LAW
The Tax Commission
is granted the authority to waive, reduce, or compromise penalties and interest
upon a showing of reasonable cause.
(Utah Code Ann. '59-1-401(10).)
DECISION AND ORDER
The Tax Commission
finds sufficient cause does exist to reduce the penalties associated with the
withholding tax to $$$$$ for the fourth quarter of XXXXX. Sufficient cause does not exist to waive the
interest. It is so ordered.
DATED this 17 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
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 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.)
^^