96-2010

Withholding Tax

Signed 10/7/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2010

:

COLLECTION 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 MMDDYY. Jane Phan, 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.

Petitioner is appealing the assessment of penalties totaling $$$$$ arising from the late filing and payment of Petitioner's withholding tax for the January YYYYY period. A single %%%%%% late penalty was assessed. Petitioner did not ask for waiver of the interest which was approximately $$$$$.

Petitioner's representative explained that the late filing was caused by a transition of employee responsibilities. As soon as Petitioner discovered the error the withholding was paid. Petitioner was only eight days late and maintains that they have an excellent payment history. Petitioner requests that the penalty be waived because Petitioner thought it was excessive under these circumstances.

Respondent's representative pointed out that new personnel, or employee transitions are not reasonable cause for waiver of penalties. However, it was her opinion that, because Petitioner did have an excellent payment history and that Petitioner caught and corrected the error prior to any notice from the Tax Commission, sufficient circumstances existed for waiver of the penalty.

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 been shown to waive the penalty of $$$$$ relating to withholding tax for the MMDDYY period. Sufficient cause was not shown for waiver of the interest.

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 7th day of October, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

^^