96-0110

Withholding

Signed 4/1/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 96-0110

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. Although notified of the Informal Hearing, Petitioner was not present. Present and representing Respondent was XXXXX.

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

FINDINGS

Petitioner is appealing the assessment of penalties in the amount of $$$$$ and interest of approximately $$$$$ assessed relating to its third quarter withholding tax. The underlying tax liability for that quarter was $$$$$.

Petitioner's representative had requested by letter that the penalty be waived because the late payment was an accident and that it was hard enough to make ends meet for Petitioner.

Respondent stated that the penalty had been assessed because Petitioner's check in the amount of $$$$$ for payment of the XXXXX third quarter taxes had bounced on XXXXX. Respondent did not know why the bounced check was actually less than the tax liability. Petitioner did not make a payment towards the liability until XXXXX and it was not paid in full until XXXXX. Respondent pointed out that financial hardship is not accepted by the Commission as reasonable cause for the purpose of waiving penalties or 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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does not exist to waive the penalties of $$$$$ or interest of approximately $$$$$ associated with Petitioner's third quarter XXXXX withholding tax. It is so ordered.

DATED this 1 day of April, 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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