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