96-1047

Withholding Tax

SIGNED 9/25/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, ) ORDER

v. ) Appeal No. 96-1047

COLLECTIONS 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 MMDDYY. 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 and XXXXX of the Collections Division.

This appeal involves penalty and interest imposed for late payment of state withholding tax for January 19YY. The penalty is $$$$$ and interest has accrued in the amount of approximately $$$$$.

At the hearing, Petitioner indicated that the basis for the request is that the business had been in existence for ten years with a good record and the error was created in the transition to a new staff. The Petitioner also indicated that it is a non-profit corporation. Respondent referred to the reasonable cause criteria relied on in waiving penalty and indicated that the record shows that this does not constitute the first time error on the account and no other criteria exists which would justify a waiver.

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 Commission has reviewed the position of both parties and finds that the penalty was properly imposed. Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the interest or the penalty assessed for the January 19YY withholding tax period.

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:

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 25th day of September, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner