96-0373
Withholding
Signed 6/5/96
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX,
Petitioner, ) ORDER
:
v. ) Appeal No. 96-0373
:
COLLECTIONS DIVISION OF THE ) Account
No. XXXXX
UTAH STATE TAX COMMISSION, :
)
Respondent. : Tax Type:
Withholding Tax
_____________________________________
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 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 appeal involves penalties of $$$$$
imposed for withholding tax from XXXXX through XXXXX for late filing and late
payment. Interest has accrued in the
approximate amount of $$$$$. Petitioner
indicated that the problem resulted from a bookkeeper who had forged checks. The Petitioner provided a police report to
support the fact that charges had been pressed against the former
employee. Under the circumstances, the
Respondent has recommended that the penalties be waived, but not the
interest. Since Petitioner and not the
Respondent had the benefit of the funds until final payment, no reasonable
grounds exist to waive the 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
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 penalties but not the interest assessed for the
periods 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 5 day of June, 1996.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco Alice Shearer
Commissioner Commissioner
^^