97-1524

WITHHOLDING

Signed 2/17/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner(s), ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1524

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 February 3, 1998. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing Petitioner was Ms. PETITIONER. Present and representing Respondent were Ms. Vickie Christoffersen and Ms. Laurie Allred, from the Collection Division.

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

FINDINGS

Petitioner had one of its employees go on maternity leave, and as a consequence, the April 1996 withholding tax return was not timely filed. Petitioner discovered the error about six weeks after the due date, and then filed the return and paid the amount of tax shown to be due thereon.

Petitioner has requested a waiver of the penalty and asserted that there were no prior problems. However, the Collection Division indicates that this is the third delinquency during the past three years. Respondent further raised the issue that the appeal was not timely filed. Notice was prepared by Respondent the end of March, 1997, and was mailed to Petitioner on April 2, 1997. The appeal of Petitioner was not filed until November 7, 1997, long after the 30 days allowed for an appeal.

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 not exist to waive the penalty associated with the penalty associated with the April 1996 withholding tax return. 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.

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, 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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