97-0695

WITHHOLDING

Signed 7/23/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY B, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0695

UTAH STATE TAX COMMISSION, :

) Account No. #####

:

Respondent. ) Tax Type: Withholding Tax

_____________________________________

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 adjudicative proceeding. A hearing was held on June 11, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONER REP.. Present and representing Respondent were Vickie Christoffersen and Laurie Allred of the Collection Division.

Based upon the evidence in the file and presented at the hearing, the Commission makes its:

FINDINGS

This appeal involves the third quarter of 1996 withholding tax. Original penalties were imposed for late payment. However, Petitioner provided documentation to verify the original payment and the Division has waived the penalty. The interest of $$$$$ has been paid, but Petitioner is requesting a refund of that amount. However, no grounds exist to justify the waiver since Petitioner and not the Tax Commission had the benefit of the funds during the interim period since the due date of the tax and the ultimate actual payment.

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 foregoing, it is hereby determined that no grounds exist to justify refund of the interest associated with the period in issue. It is so ordered.

DATED this 23 day of JULY, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

GAIL S. REICH

Administrative Law Judge

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 23 day of JULY, 1997.

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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