98-0124

Withholding Tax

Signed 5/1/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER :

:

Petitioner, : DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 98-0124

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Withholding Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5 on April 15, 1998. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was NAME. Present and representing Respondent was Ms. Laurie Allred, from the Collection Division.

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

FINDINGS

The issue in this case is a $$$$$ penalty imposed for the late filing of the Utah Withholding Tax Return of Petitioner for the first quarter of 1997.

Petitioner had attempted to receive the forms, but they were sent to the wrong address, even though the request for the forms was made well in advance of the filing deadline. However, the forms were not ultimately received until two months later.

Petitioner is an Ohio corporation and files in many states, but represent they only have limited staff to deal with the problem.

Respondent represented that this was the first delinquency of any type for more than the past three years. Petitioner represented they had never had a problem in their prior five years of filing.

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 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 1 day of May, 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 1 day of May, 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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