95-1493

Withholding

Signed 2/29/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : ORDER

:

v. : Appeal No. 95-1493

:

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 an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Respondent was XXXXX. Respondent indicated that he had spoken to Petitioner in regard to this matter and the Petitioner would not be appearing, but that the parties had come to an agreement.

This appeal involves penalty and interest for XXXXX withholding taxes. The return was filed on time but payment was not made until XXXXX rather than the due date of XXXXX. Petitioner has provided documentation to support its explanation of the circumstance that the employee responsible for the problem has resigned and was suffering from numerous medical problems at the time in issue, which resulted in the error. Based on the circumstances, the Respondent has recommended waiver of penalty but not the interest. This recommendation was made to the Petitioner who simply requested that the recommendation be made at the hearing and that Petitioner would not appear.

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

Based upon the information presented at the hearing, 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 the period in issue.

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 29 day of February, 1996.

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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