96-2126

WITHHOLDING

SIGNED 11/29/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, ) ORDER

v. ) Appeal No. 96-2126

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

This appeal involves the 19YY withholding tax. An audit showed an additional $$$$$ of tax due. A 10% penalty for failure to pay was imposed. Approximately $$$$$ of interest has accrued. The TC-96R did not reconcile with the amount reported on the W-2=s. Petitioner indicated that the company was out of business and she could not produce any records to prove the matter one way or the other. Petitioner indicated that there was no money left to pay this assessment. Petitioner was apprised of the Offer in Compromise procedure which is available if financial hardship is an issue.

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 not been shown to waive the additional tax, penalties and interest assessed for the 19YY tax year.

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 29th day of November, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner