85-0534 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

UTAH STATE TAX COMMISSION

COLLECTION DIVISION, :

)

Petitioner, : Decision From

) Informal Hearing

v. : To Revoke Sales Tax

) License

XXXXX :

c/o XXXXX, ) Appeal No. 85-0534

: Sales Tax Lic. XXXXX

Respondent. )

_____________________________________

STATEMENT OF CASE

Application has been made by the Utah State Tax Commission, Collection Division for the revocation of the Sales Tax License No. XXXXX. An Informal Hearing was held on XXXXX. The hearing was conducted by James E. Harward, Hearing Officer for the Utah State Tax Commission. Also presiding was XXXXX, Appeals Section Supervisor. XXXXX and XXXXX appeared for the Collection Division of the Tax Commission. The Respondent was present and represented by XXXXX.

The Collection Division presented evidence of an outstanding sales tax, penalty, and interest liability in excess of $$$$$; that many attempts had been made to reconcile the account with the Respondent including his setting up a payment arrangement; that the promises made have not been kept by the Respondent; that checks to the state have been returned from the bank upon which they were written as uncollectible. The Collection Division further presented testimony that based upon their contacts with the Respondent there was little likelihood, if any, that the account could be brought current if the Respondent was allowed to remain in business.

The Respondent then presented evidence that the promises were intended to be kept, but due to the downturn in business they were unable to pay the sales tax to the state. They further testified that during the quarters involved, i.e. the third quarter of XXXXX, and the second quarter of XXXXX, he lost money overall in the business. He further testified that they made a substantial profit in the third quarter of XXXXX; however, he has failed to file a return or pay the tax for the third quarter of XXXXX. Further, Respondent collected the money but did not remit it to the Tax Commission at the time of filing the returns.

DECISION AND ORDER

Based upon the evidence presented at the Informal Hearing, it is the Decision and Order of the Utah State Tax Commission that Sales Tax License No. XXXXX be hereby revoked.

It is the further order of the Tax Commission that a representative of the Commission serve this Decision and Order upon the Respondent and thereupon seize the sales Tax License No. XXXXX.

If the License is not in the possession of the Respondent, the Respondent is ordered to deliver it to the Utah State Tax Commission within 24 hours from the date of the service of this Order.

The Respondent is hereby ordered to close the doors of his business. Failure to do so may result in criminal prosecution.

The Respondent may request in writing within three (3) working days from receipt of this Decision, that the Commission stay the execution of this Order for thirty (30) days providing the Respondent is able to prove the following conditions have been met:

1. A bond has been posted in the amount of the tax, penalty and interest that is due. The bond must be in the form a cashiers check, certificate of deposit, surety bond or cash.

2. Proof that an account has been opened at a local financial institution by the end of the first banking day following the receipt of this Decision. The account must name the Respondent's company and the Utah State Tax Commission as co-owners. In addition, the Respondent must make weekly deposits into the account in the amount of the current accruing sales tax liability.

DATED this 10 day of January, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

Mark K. Buchi Gary Cornia

Chairman Commissioner

R. H. Hansen Roger O. Tew

Commissioner Commissioner