BEFORE THE UTAH STATE TAX COMMISSION
TAXPAYER SERVICES DIVISION, )
UTAH STATE TAX COMMISSION, ) ORDER OF REVOCATION
) Appeal No. 02-1828
v. ) Account No. #####
RESPONDENT, ) Tax Type: Sales Tax
) Presiding: Phan
Jane Phan, Administrative Law Judge
For Petitioner: Clark Snelson, Assistant Attorney General
Stan Allen, Assistant Director of the Taxpayer Services Division
Ken LaFevre, Tax Compliance Agent
For Respondent: RESPONDENT REP
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 9, 2003.
This matter is before the Utah State Tax Commission due to the Request for Revocation of Sales Tax License, filed by Petitioner on December 10, 2002. 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.
As of the date of the Initial Hearing, Respondent owed $$$$$ in sales tax, penalties and interest. Respondent had filed sales tax returns for the second and third quarters of 2002 without any payment for those quarters. Respondent's representative had, previous to these quarters, entered into a payment agreement whereby he would stay current and pay $$$$$ towards the prior liability. Although, he made some of the $$$$$ payments in the beginning, he then failed to continue making the $$$$$ payments as well as failing to stay current.
Respondent's representative explained that the business was struggling financially, but he had worked out a system whereby he was now separating the sales tax amount at the time the funds were deposited, so that he could stay current. He wanted to keep the business open so that he could continue to employ the 13 individuals who worked for him as well as attempt to sell the business as a going operation in order to pay creditors.
The commission shall, on a reasonable notice and after a hearing, revoke the license of any person violating any provision of this chapter and no license may be issued to such person until the taxpayer has complied with the requirements of this chapter. Any person required by this chapter to collect sales or use tax within this state without having secured a license to do so, is guilty of a criminal violation as provided in Section 59-1-401. (Utah Code Ann. '59-12-106(1).)
DECISION AND ORDER
During the course of the hearing Petitioner indicated he was willing to make additional payments to keep the business open and Respondent dictated the terms under which it was willing to allow the business to retain its sales tax license.
Based on the discussion between the parties, the revocation of Respondent's sales tax license will be held in abeyance as long as the following terms are met by Respondent:
1. Respondent is to pay $$$$$ towards the sales tax deficiency no later than January 10, 2003.
2. Respondent is to pay $$$$$ each month towards the back sales tax deficiency on the first day of the month, begging with February 1, 2003.
3. Respondent is to stay current in timely filing returns and paying sales tax for each quarter as it becomes due.
4. Respondent's representative, RESPONDENT REP, is to sign a personal guarantee pertaining to the unpaid sales tax for the second and third quarters of 2002, the total amount of which is $$$$$.
5. Respondent is to pay the balance of any remaining deficiency no later than July 31, 2003.
6. If Respondent fails to materially comply with any of the terms of this order, Respondent's sales tax license may be revoked without further administrative hearing if the following terms and conditions are met. In the event of a failure to comply, Petitioner is to submit to the Appeals Section, with a copy to Respondent, an affidavit which indicates which provision Respondent has failed to perform and a total payoff amount for the account. Respondent will then have ten business days to pay the entire amount of the deficiency remaining in the sales tax account and any subsequent quarterly payments which are due at that time. If Respondent fails to make the payoff within this period, its sales tax license will be revoked by order which will be issued by the Commission at that time.
It is so Ordered.
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 13th day of January , 2003.
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 13th day of January , 2003.
Pam Hendrickson R. Bruce Johnson
Commission Chair Commissioner
Palmer DePaulis Marc B. Johnson