97-1381
WITHHOLDING
Signed 2/17/97
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY B, )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION OF
THE ) Appeal
No. 97-1381
UTAH STATE TAX
COMMISSION, :
) 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 Mr.
PETITIONER. Present and representing
Respondent were Ms. Laurie Allred 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 new
secretary and for the 18 months that she was employed she did not file any
payroll withholding tax returns with the State of Utah or pay to the State of
Utah any amounts of taxes withheld from the paychecks of the employees. The period of delinquency ran from the
fourth quarter of 1995 through the first quarter of 1997.
Upon hiring a new
secretary, she reviewed the matter and filed all of the delinquent tax returns
and the amount of taxes withheld were paid, together with interest.
Petitioner has requested
a waiver of the penalties for the 18 month period. Petitioner alleges that his former secretary was embezzling the
funds, and that she embezzled more than $$$$$ in taxes. However, Petitioner did not file any
criminal charges against his former secretary, and he alleges the reason is
because she made other allegations regarding him, and he decided it was just
not worth it to get into the kind of fight that might result. In addition, Petitioner alleges he had a
separate tax account set up into which the withholding taxes were placed, and
that it was not the tax account which Petitioner claims was embezzled.
A late filing penalty of
10% and a late payment penalty of an additional 10% were imposed upon
Petitioner.
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 one of the 10% penalties, but sufficient
cause does not exist to waive both of the 10% penalties associated with the
withholding tax return for the fourth quarter of 1995 through the first quarter
of 1997 withholding tax returns. Therefore, the penalty is reduced to a single 10% penalty for each
quarter. 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.
_______________________________
G. BLAINE DAVIS
Administrative Law Judge
The agency has reviewed
this case and the undersigned concur in this decision.
DATED this 17 day of
February, 1997.
BY ORDER OF THE UTAH
STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^