Sales Tax Revocation
BEFORE THE UTAH STATE TAX COMMISSION
TAXPAYER SERVICES DIVISION )
OF THE UTAH STATE TAX ) ORDER
) Appeal No. 01-1336
) Account No. #####
) Tax Type: Sales Tax Revocation
) Judge: Davis
G. Blaine Davis, Administrative Law Judge
For Petitioner: Mr. Mark W. Wainwright, Assistant Attorney General
Ms. Jan Sanchez, from the Taxpayer Services Division
Ms. Julie Halvorson, from the Taxpayer Services Division
For Respondent: PETITIONER REP, from the law firm of COMPANY A
PETITIONER REP 2
PETITIONER REP 3
STATEMENT OF THE 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 January 24, 2002.
This matter is before the Utah State Tax Commission due to the Request for the Revocation of Sales Tax License, filed by Petitioner on September 14, 2001. Petitioner requests revocation of sales tax license number ##### pursuant to Utah Code Ann. '59-12-106(1) on the grounds that Respondent has failed to comply with the laws of the Utah Sales Tax Act.
Respondents obtained their sales tax license in 1997, and for the first eight months, they were faithful in filing and paying their sales tax returns. After that first eight months, construction on ROAD was responsible, in part, for a substantial drop in their business to a level of less than one-third of what it was before the ROAD construction. When the ROAD exit was reopened, his business began to recover by about 5% per month, but then new construction commenced to widen the roads on ROAD and additional construction was implemented on ROAD and also on ROAD. This construction substantially reduced the traffic and caused substantial impact on the business.
Because of the difficulties, Respondent has not paid the sales tax due for numerous taxable periods. At the time the Petition was filed by Petitioner, Respondent owed nearly $$$$$ and has not paid any sales tax since that time. It is estimated the business currently owes approximately $$$$$ in sales tax. In addition, there may be amounts of withholding tax due.
Petitioner represented there have been numerous discussions and attempts to make arrangements with Respondents, and there have been discussions of anticipated refinancing or sale of the property of the business. However, there has been no success in working out an arrangement, and there are no indications of imminent financing. There were also discussions of setting up a trust account, but Respondents failed to follow through.
Respondents allege the property is worth approximately $$$$$, and there are first mortgages of approximately $$$$$. In addition to the amounts owed to the Utah State Tax Commission, Respondent also owes approximately $$$$$ to the Internal Revenue Service. All of the creditors are seeking judicial recovery of the amounts due, and at least one of the mortgages is in foreclosure. However, Respondents feel that a sale may be made on the business or refinancing may be obtained.
The Commission shall, on a reasonable notice and after a hearing, revoke the license of any person violating any provision of this chapter and no license may be issued to such person until the taxpayer has complied with the requirements of this chapter. Any person required by this chapter to collect sales or use tax within this state without having secured a license to do so, is guilty of a criminal violation as provided in Section 59-1-401. (Utah Code Ann. '59-12-106(1).)
DECISION AND ORDER
The account is substantially delinquent and has been for a substantial period in violation of the provisions of the Sales Tax Act. There are more than sufficient grounds to require revocation of the sales tax license. The Commission determines it cannot permit Respondent to continue collecting sales tax and not remitting that sales tax to the State Tax Commission as required by law.
Based upon the foregoing, the Utah State Tax Commission hereby revokes sales tax license number ##### for failure to comply with the provisions of the Sales Tax Act.
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
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 25th day of February , 2002.
G. Blaine Davis
Administrative Law Judge
BY ORDER OF THE UTAH STATE TAX COMMISSION.
The Commission has reviewed this case and the undersigned concur in this decision.
DATED this 25th day of February , 2002.
Pam Hendrickson R. Bruce Johnson
Commission Chair Commissioner
Palmer DePaulis Marc B. Johnson