85-0124 - Sales

THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX                                                                                  )

            Petitioner,                                                         :

                                                                                    )           INFORMAL DECISION

v.                                                                                 :

                                                                                    )

COLLECTION DIVISION OF THE                          :

STATE TAX COMMISSION OF UTAH,                  )           Appeal No. 85-0124

                                                                                    :           Acct. No. XXXXX

            Respondent.                                                     )

_____________________________________

STATEMENT OF CASE

            This is an appeal to the Utah State Tax Commission concerning a penalty and interest waiver request on Account No. XXXXX for the tax year XXXXX.  An 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.

            At the end of XXXXX, Petitioner bought his former business partner out of their XXXXX Corporation.  Income was declared on present work in progress and fully depreciated equipment was assigned at market value in the buy-out, resulting in an artificially high gross income of $$$$$.  Petitioner's usual income was $$$$$.  Petitioner submitted $$$$$ with his return and a letter indicating that if Respondent would inform Petitioner of the remaining balance, Petitioner would make continuous payments to have the return paid off within the year.  Petitioner contacted the Tax Commission several times during the summer of XXXXX, to find out the remaining balance and submitted an additional $$$$$ in XXXXX, but received no additional correspondence from the Tax Commission until XXXXX.  Petitioner has otherwise remained current on taxes and has no other outstanding tax obligations.

            Respondent assessed a penalty of $$$$$ and interest of $$$$$ for a total of $$$$$.  Petitioner has paid all but the penalty of $$$$$.

DECISION AND ORDER

            It is the decision and order of the Utah State Tax Commission that the request for waiver of penalty and interest on Account No. XXXXX for the tax year XXXXX is denied.

            The assessment by the Collection Division of the Utah State Tax Commission is hereby affirmed.

            DATED this 8 day of October, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSTAINED

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            G. Blaine Davis *

Commissioner                                                               Commissioner

* Since the hearing on this case, Chairman Mark K. Buchi has resigned and R. H. Hansen has been appointed as the Chairman for the Commission.  G. Blaine Davis has been appointed as a Commissioner and has been duly advised of the facts and circumstances regarding this case and is qualified to sign this decision.