BEFORE THE STATE TAX COMMISSION OF UTAH
c/o XXXXX :
v. : DECISION OF
) INFORMAL HEARING
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION )
: Appeal No. 85-0113
Respondent ) Account No. XXXXX
STATEMENT OF CASE
This is an Appeal to the Utah State Tax Commission from a Decision of the Collection Division of the Utah State Tax Commission (Respondent) to deny a request for waiver of penalty and interest submitted by XXXXX (Petitioner).
The Informal Hearing was held on XXXXX in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner. XXXXX, Assistant Attorney General, represented the Respondent.
Based on the evidence and the recommendation of the Hearing Officer, the Commission makes the following determinations:
1. The tax periods in question are the 2nd and 4th quarters of XXXXX and the 1st and 2nd quarters of XXXXX.
2. The assets of XXXXX were sold on XXXXX.
3. Petitioner indicated that there was an extensive change in operation the first week in XXXXX, at which time the regular secretary was let go and the book work was done by an office manager with very little experience in tax matters. This resulted in confusion and uncompleted work. Nothing was paid until someone brought it to the attention of the office manager. In XXXXX with the help of its accountant, Petitioner attempted to straighten out its taxes but was unaware of the imposition of penalty and interest on delinquent taxes.
4. The Commission acknowledges that it took time for Petitioner to adjust the bookkeeping problems and recognizes that Petitioner has been diligent in attempting to resolve the matter. Nevertheless, Petitioner was negligent in failing to insure that the bookwork would be done by a person competent in tax matters. Furthermore, the burden is on the Petitioner to file a proper return and not on the Respondent to detect errors before penalty and interest accrue.
THEREFORE, IT IS HEREBY DECIDED THAT:
1. Petitioner's request for waiver of penalty and interest is denied.
2. Respondent's determinations of deficiency of both sales tax and withholding tax are sustained.
DATED this 12 day of March, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Mark K. Buchi R. H. Hansen
Roger O. Tew Joe B. Pacheco