97-0917
WITHHOLDING
Signed 11/25/97
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY B, )
:
Petitioner, ) DECISION
:
v. ) Appeal No. 97-0917
:
AUDITING DIVISION OF THE ) Account
No. #####
UTAH STATE TAX COMMISSION, :
STATE OF UTAH, )
:
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 Administrative Procedures Act and 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. A hearing was held on October 15,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing
Petitioner was PETITIONERS REP..
Present and representing Respondent was Mr. Frank Hales, of the Auditing
Division.
FINDINGS
This appeal involves the auditing period of
1995. A penalty of $$$$$ was imposed
for failure to reconcile W-2's at the end of the year. Interest of approximately $$$$$ has accrued. The additional amount of tax due and owing
was approximately $$$$$ and that amount has been paid. This constitutes first time error for
Petitioner and on that basis, sufficient grounds exist to constitute
justification for waiver of the penalty.
However, the interest simply reflects the fact that the taxpayer and not
the Tax Commission had the benefit of the funds during the interim period, and
no grounds exist to justify waiver of that amount.
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 a thorough review of the entire matter,
the Tax Commission finds sufficient cause does exist to waive the penalty but
not the interest associated with the 1995 audit period for withholding tax
penalty. It is so ordered.
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 appeal rights in this matter.
DATED this 25 day of NOVEMBER, 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 25 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
^^