96-2240
Withholding Tax
Signed 3/11/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
COMPANY A, :
:
Petitioner, : ORDER
:
v. : Appeal No. 96-2240
:
COLLECTION
DIVISION OF THE : Account No. #####
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 February 3,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was
PETITIONERS REP.. Present and
representing Respondent RESPONDENT REP. of the Collection Division.
This
appeal involves late filing and late payment penalty for withholding tax for
the first quarter of 1996. Petitioner
indicated that there was upheaval in the company and the payment was
forgotten. The Division sent notice of
failure to pay, which brought this matter to the attention of Petitioner. In reviewing the criteria to determine
whether grounds exist for reasonable cause for the Division to waive the
penalty, the Respondent indicated that one prior error had occurred which
removed the opportunity for first time error in this instance. There were no other circumstances to justify
waiver of the penalty that was imposed in this instance.
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 entire matter and the positions of both Petitioner
and Respondent. 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 penalty
imposed for the first quarter of 1996 for 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 11 day of March, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^