97-1380

WITHHOLDING

Signed 2/17/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY C )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1380

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 December 9, 1997. G. Blaine Davis, 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 Ms. Laurie Allred, Ms. Jan Sanchez, and Ms. Vickie Christofferson, from the Collection Division.

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

FINDINGS

Petitioner hired a bookkeeper in October, 1994, and she was employed in that capacity until March, 1997. Immediately after hiring that individual, the account of Petitioner with the Tax Commission began to have problems. Over the two and one-half year period, most monthly returns were timely filed with the Utah State Tax Commission, but most of the returns did not have a payment enclosed, although there were some months which had full payment for the amount reported on the withholding tax return.

Petitioner alleges that over that 30 month period, the bookkeeper was embezzling funds, starting in May, 1995. Petitioner alleges that during that period the bookkeeper embezzled more than $$$$$. She was terminated in March, 1997 for Asuspicion of fraud.@ Criminal charges were filed against her.

Total penalties assessed over that 30 month period were $$$$$. The current balance of those penalties is $$$$$.

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 finds sufficient cause does exist to waive the balance of the penalty together with any interest due thereon associated with the withholding tax of Petitioner, but sufficient cause has not been shown to waive any amounts heretofore paid by Petitioner. 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 17 day of February, 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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