96-2171

Withholding

Signed 12/23/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

Petitioner, : INFORMAL DECISION

:

v. : Appeal No. 96-2171

:

COLLECTION DIVISION OF THE : Account No. #####

UTAH STATE TAX COMMISSION, :

Respondent. : Tax Type: Withholding

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. As provided for by Utah Code Ann. §63-46b-5, this decision is being based solely upon the documentary evidence or record contained in the Tax Commission's file.

FINDINGS

This matter involves a waiver request for late filing and late payment of withholding for January and February 19YY. The record shows that Respondent had already waived the January penalty based upon first time error. However, in looking at the matter, the “error” was that Petitioner qualified for quarterly filing in 19YY and in 19YY, but had chosen to file monthly in 19YY because of bookkeeping ease. Since there was a change in bookkeeping administration in 19YY, Petitioner chose to go with the quarterly filing to which it was entitled. Respondent’s position is that Petitioner should have requested the change even though entitlement existed based on the amount of the filings. It is clear that the error involved the first quarter, rather than January and February independently.

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 Tax Commission finds sufficient cause has been shown to waive the penalty associated with the January and February withholding for 19YY but not the interest. It is so ordered.

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

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-13 et. seq.)

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