98-0714
Withholding Tax
Signed 10/23/98
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, :
: ORDER
Petitioner, :
: Appeal No.
98-0714
v. : Account No. #####
:
AUDITING
DIVISION OF : Tax Type: Withholding Tax
THE UTAH STATE
TAX )
COMMISSION, : Presiding: Pacheco
:
Respondent. :
_____________________________________
Presiding:
Joe B.
Pacheco, Commissioner
Appearances:
For
Petitioner: PETITIONER,
by telephone
For
Respondent: Mr.
Brent Taylor, from the Auditing Division
STATEMENT OF THE CASE
This
matter came before the Utah State Tax Commission for a Status Conference and
was therein converted to an Initial Hearing to be conducted pursuant to the
provisions of Utah Code Ann. §59-1-502.5, on October 15, 1998.
The
issue in this appeal is based on an audit assessment based on Petitioners
failure to properly report amounts withheld and reported on the W2's and the
annual reconciliation of withholding taxes.
APPLICABLE LAW
1. A 10% penalty is assessed pursuant to Utah
Code Ann.§59-1-401(5)(a) for failure to reconcile tax withheld with W2's as
required under Utah Code Ann.§59-10-406(2).
2. Pursuant to Utah Code Ann.§59-10-537(1);
"If any amount of income tax is not paid on or before the date prescribed
in this chapter for payment, interest on such amount at the rate and the manner
prescribed in §59-1-402 shall be paid".
3. 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
Petitioner
requests a waiver of the penalty and interest added to the assessment of the
audit of the W2 reconciliation.
Petitioner indicates that their
research of their tax payments indicate
that a list of checks for each of the seven months in question were issued to
the State of Utah for payment of the taxes for each of the respective
months. However, they did recognize
that the checks were yet uncashed.
Petitioner says they immediately stopped payment on these checks and issued
a check for they payment of the tax to the State of Utah upon notification of
the tax assessment. Respondent
indicated that the returns had been received but the payment for each of the
seven months in question had not been paid in timely fashion in 1994, therefore
a penalty should be assessed and the interest should stand. The commission finds that reasonable cause
under the first time error cause exists to waive the penalty of $$$$$ however,
the Commission upholds the assessment of the interest in this case as the State
of Utah was denied the use of funds for that period of time and has not found
sufficient reasonable cause to waive the interest assessment.
This
decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case
files 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, Utah 84134
Failure
to request a Formal Hearing will preclude any further appeal rights in this matter.
DATED
this 23 day of October, 1998.
____________________________________
Joe B. Pacheco
Commissioner
BY ORDER OF THE UTAH STATE TAX COMMISSION.
The
Commission has reviewed this case and the undersigned concur in this decision.
DATED
this 23 day of October, 1998.
Richard B.
McKeown Pam
Hendrickson
Chairman Commissioner
^^