97-0803
WITHHOLDING
Signed 11/12/97
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY B, )
:
Petitioner, ) ORDER
:
v. ) Appeal No. 97-0803
:
COLLECTION DIVISION OF THE ) Account
No. #####
UTAH STATE TAX COMMISSION, )
Respondent. : Tax Type:
Withholding
_____________________________________
IMPORTANT NOTICE: On October 7, 1997 the
Utah Supreme Court, in Evans and Sutherland Computer Corp v. Utah
State Tax Commission, invalidated the informal adjudicative process
by disallowing trial de novo to the District Court. Therefore, your appeal is now being
processed as a formal adjudicative proceeding.
Under this process, you are entitled to an additional right. Utah Law allows for an Initial Hearing before
the matter is heard on the record in a formal proceeding. Therefore, the hearing held in this matter
will constitute the Initial Hearing.
Please note in the body of the decision your right to, and the method of
request for, a formal hearing.
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5.
An Initial Hearing was held on September 18, 1997. Jane Phan, Administrative Law Judge, heard
the matter for and on behalf of the Commission. Present and representing Respondent were PETITIONERS REP. and
PETITIONERS REP.. Although duly
notified of the date, time, and location of the Informal Hearing, Petitioner
did not appear.
Petitioner is appealing the assessment of
penalties totaling $$$$$ arising from the late payment and filing of
withholding tax for the first quarter of 1996 through the third quarter of
1996.
In the letter requesting waiver Petitioner's
representative explained that the business operations began in January
1996. They had retained an accountant
and assumed the accountant was making the required tax filings. PETITIONER, apparently the founder of the
business, was out-of-state until well into the third quarter of 1996. The day to day financial decisions were left
to the accountant. When Petitioner
determined that the accountant was not doing what Petitioner expected, the
accountant was dismissed.
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
After reviewing the information presented to
the Commission in this matter the Commission determines that sufficient
reasonable cause, due to first time filing, has been shown to waive the penalty
for the first quarter at issue.
Sufficient cause was not shown to waive the remaining penalties or
interest. It is so ordered.
This Decision does
not limit a party's right to a Formal Hearing.
Any party to this case may file 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 12 day of NOVEMBER, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Richard
B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^