97-0729
____________________________________
COMPANY B, :
:
Petitioner, : ORDER
:
v. : Appeal No. 97-0729
:
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 pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
adjudicative proceedings. An Informal
Hearing was held on June 30, 1997. Jane
Phan, Administrative Law Judge, heard the matter for and on behalf of the
Commission. Although duly notified of
the date, time and location of the hearing Petitioner was not present. Present and representing Respondent was
Laurie Allred.
Petitioner
is appealing the assessment of penalties totaling $$$$$ and interest of
approximately $$$$$ relating to the late filing of withholding tax returns, for
the second and third quarters of 1996.
Penalties in the amount of $$$$$ had already been waived by the
Collection Division Waiver Unit for the same period.
The
Tax Commission records indicate that Petitioner had filed and paid withholding
for the fourth quarter of 1995 and the first quarter of 1996. Then Petitioner did not file for the two
quarters at issue in this appeal, the second and third quarters of 1996, until February
1997. From the letter in which Petitioner
requested waiver of the penalties, Petitioner explained that he was unsure how
to treat withholding as his one employee was also his son-in-law who was living
with him at the time of the employment.
Respondent did not recommend further waiver of the penalties as the
periods at issue were not the first filings of withholding tax for
Petitioner. Also Petitioner had not
filed and paid the tax until February 1997, after notices had been mailed
concerning the delinquent periods. Tax
Commission records indicated that Petitioner did not contact the Tax Commission
by letter or telephone for information concerning witholding tax.
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 further
reduce the penalties and interest relating to withholding tax for the second
and third quarters of 1996.
DATED
this 21 day of JULY, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Jane Phan
Administrative Law
Judge
The
agency has reviewed this case and the undersigned concur in this decision.
DATED this 21 day of
JULY, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^^