95-1094

Withholding

Signed 11/16/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, ) INFORMAL DECISION

:

v. )

:

AUDITING DIVISION OF THE ) Appeal No. 95-1094

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Withholding Tax

_____________________________________

STATEMENT OF CASE

This matter was scheduled for a Status Conference on XXXXX. Petitioner did not appear at the Status Conference. Instead of requesting a default for Petitioner's failure to appear Respondent's representative requested that this matter come before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. The Status Conference was converted to an Informal Hearing with Jane Phan, Administrative Law Judge, hearing the matter for and on behalf of the Commission. Present and representing Respondent was XXXXX.

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

FINDINGS

Petitioner is appealing interest assessed of approximately $$$$$ relating to withholding tax for the audit period of XXXXX through XXXXX. No penalty was assessed. Although Petitioner did not appear at the Status Conference, Respondent's representative did not request dismissal of Petitioner for failure to appear because he felt that the records clearly indicated an error on the part of the Tax Commission caused the deficiency for which the interest was assessed.

Respondent's representative explained that an error had been made by a Tax Commission employee which made it look like part of September's withholding had not been paid. The error was made in the encoding process where the Petitioner's check for $$$$$ was processed by the Tax Commission as a check for $$$$$.

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 waive the approximately $$$$$ in interest assessed relating to the Petitioner's withholding tax for the audit period of January 1, XXXXX to December 31, XXXXX. It is so ordered.

DATED this 16 day of November, 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-13 et. seq.)

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