97-1248
WITHHOLDING
Signed 11/25/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
COMPANY A )
)
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION
OF THE ) Appeal
No. 97-1248
UTAH STATE TAX
COMMISSION, :
STATE OF UTAH, ) Account
No. #####
:
Respondent. ) Tax
Type: Withholding Tax
_____________________________________
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 29,
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 were RESPONDENT REP. and RESPONDENT REP., of the
Auditing Division.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
This appeal
involves a 10% penalty imposed for failure to reconcile W-2's with annual
reconciliation regarding the 1994 withholding tax. The penalty imposed was approximately $$$$$. Petitioner is
appealing, requesting the penalty be waived.
The record indicates that this constitutes first time error for the
Petitioner on this account. Tax
Commission guidelines indicate that first time error is sufficient grounds to
justify waiver of the imposition of a penalty.
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 has been determined that sufficient cause does exist to waive the
penalty associated with the period in issue.
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 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
^^