97-1556

WITHHOLDING

Signed 2/17/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY B, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1556

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 on the telephone and representing Petitioner was PETITIONERS REP.. Present and representing Respondent was Ms. Vickie Christoffersen, from the Collection Division.

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

FINDINGS

The withholding tax return for Petitioner for the third quarter of 1997 was inadvertently late. Petitioner discovered the problem and mailed the return on October 7, 1997, only seven days after the due date.

In 1992, Petitioner was late for several months, but they allege that the delinquencies were at a time when the returns were prepared from another office and not in the main office, and that there has never been a delinquency since the preparation and filing of the returns was assigned to the main office. There have been no delinquencies since 1992.

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 penalty associated with the withholding tax return for the third 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 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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