96-2118

Withholding

SIGNED 12/23/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) ORDER

:

v. ) Appeal No. 96-2118

:

AUDITING DIVISION OF THE ) Account No. #####

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 by telephone was PETITIONERS REP. Present and representing Respondent were XXXXX and XXXXX of the Auditing Division.

This appeal involves the 19YY withholding tax period. Additional withholding tax of $$$$$ was due. This matter came to the attention of the Division since the payments made did not match and reconcile with the W-2 forms and the TC-96R forms. A 10% penalty of $$$$$ was imposed with approximately $$$$$ of interest having accrued. The amounts have been paid and Petitioner is requesting a refund of penalty. The problem arose as a result of a computer conversion and two payments were made in January rather than the December payment being made for December 19YY, which resulted in the underpayment. A review of the record shows that this is an isolated matter and constitutes first time error for the Petitioner.

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 for the 19YY withholding tax.

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 23rd day of December, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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