97-1322

INCOME - Withholding

Signed 1/27/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY C, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1322

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, ) Account No. #####

:

Respondent. ) Tax Type: Withholding Tax

_____________________________________

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 October 22, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing Petitioner was PETITIONER. Present and representing Respondent were Ms. Laurie Allred and Ms. Vickie Christoffersen, of the Collection Division.

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

FINDINGS

This appeal involves late filing and late payment penalties imposed for sales tax and withholding tax for the first quarter of 1997. The penalty for the sales tax was approximately $$$$$ and for withholding approximately $$$$$. The interest that accrued for the sales tax was approximately $$$$$ and the interest that accrued on the withholding tax was approximately $$$$$. Petitioner indicated that the problem resulted from cerebral hemorrhaging which affected short and long term memory. The medical condition has resulted in lapses in short term memory which, in this instance, resulted in the late payment of the first quarter obligation for 1997. Petitioner indicated that steps have been taken to place another in charge so that the late reporting will not recur.

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

The Tax Commission has taken the matter into consideration and has considered the issues raised by each of the parties. It has been determined that sufficient cause does exist to waive the penalty but not the interest associated with the first quarter of 1997. 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, UT 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this _____ day of ____________, 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 27 day of January, 1998.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner

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