85-0127 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,                                                                                 )

in care of XXXXX,                                                      :

                                                                                    )

                Petitioner,                                                         :           FINDINGS OF FACT,

                                                                                                                )           CONCLUSIONS OF LAW,

v.                                                                                 :           AND FINAL DECISION.

                                                                                                                )

COLLECTION DIVISION OF THE                          :           Appeal No. 85 0127

STATE TAX COMMISSION OF UTAH,                  )           Acct. No. XXXXX

                                                                                                                :

                Respondent.                                                     )

_____________________________________

STATEMENT OF CASE

            A Formal Hearing was held on XXXXX.  XXXXX represented Petitioner.  XXXXX, Hearing Officer, heard the matter for the Utah State Tax Commission.  Petitioner is appealing the informal decision dated XXXXX in favor of Respondent.

            Mr. XXXXX testified that due to financial difficulties he had become delinquent in the payment of his sales tax.  In XXXXX, XXXXX, a collection agent for the State Tax Commission, called Mr. XXXXX in an effort to straighten out the XXXXX.  Mr. XXXXX told Mr. XXXXX that he anticipated selling property toward the beginning of XXXXX.  After the sale closed, Mr. XXXXX went to Mr. XXXXX's office and brought his account completely up to date.  During the course of the Formal Hearing, Mr. XXXXX emphasized that he has never requested an interest waiver.  He requested only a penalty waiver because he understands that the state is a functioning business and that he owed the state the tax and the interest.  He believed that Respondent's refusal to acknowledge that he was requesting only a penalty waiver and Respondent's actions indicating he was requesting both a penalty and interest waiver had prejudiced his case.

            Mr. XXXXX testified that Mr. XXXXX was very surprised that the request for penalty waiver had been denied because Mr. XXXXX had had some recent cases very similar to Mr. XXXXX's in which the penalty request had been granted.  Mr. XXXXX expressed his frustration from dealing with state employees who never seemed able to help him.  Mr. XXXXX also expressed concern that between the time that he brought his account current and the time of the Formal Hearing, the state's attitude toward money and collections had changed.  He felt that the change in attitude also had some effect on whether his penalty waiver request would be granted.

FINDINGS OF FACT

            l. The 10% negligence penalty was properly assessed against Petitioner's delinquency.

            2. Mr. XXXXX promptly paid all the delinquent tax, penalty, and interest in full when he said he would and as soon as he was financially able to.

            3. Experiencing financial difficulties is not an excuse for failing to set aside amounts collected as sales tax and remitting these amounts to the state.

CONCLUSIONS OF LAW

            l. Although Mr. XXXXX was extremely cooperative in bringing his account up to date when he could, the Commission does not feel justified in exercising its discretion to reduce the penalty in this case.

FINAL DECISION

            Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to affirm the penalty in this case.

            DATED this 5 day of August, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen                                                                Roger O. Tew

Commissioner                                                               Commissioner

Joe B. Pacheco                                                            G. Blaine Davis

Commissioner   Commissioner