86-0174 - Sales and Use

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

UTAH STATE TAX COMMISSION,

COLLECTION DIVISION, )

:

Petitioner, ) INFORMAL DECISION

: SALES TAX REVOCATION

v. ) REQUEST

:

XXXXX, )

c/o XXXXX :

) Appeal No. 86 0174

Respondent. : Sales Tax No. XXXXX

_____________________________________

STATEMENT OF CASE

An Informal Hearing was held on XXXXX. James E. Harward, Hearing Officer, heard the matter for and in behalf of the Utah State Tax Commission. XXXXX represented herself as Respondent and the Tax Commission (Petitioner) was represented by XXXXX and XXXXX.

After reviewing the evidence presented and the written documentation submitted, the Commission makes the following determinations:

1. Respondent was issued a sales tax license No. XXXXX.

2. Respondent was responsible for the collection of sales taxes on the sale of its goods and services and was required to remit these taxes to the State Tax Commission. Utah Code Ann. § 59-15-5 (1953).

3. Respondent did not properly remit the full amount of sales tax collected each quarter. Instead, Respondent has a history of late returns and all taxes that have been collected have been on checks written by Respondent which were returned unpaid due to insufficient funds.

4. The Utah State Tax Commission is vested with the authority to revoke the license of "any person violating any provision of this [sales tax act] . . . " Utah Code Ann. § 59-15-3 (1953).

DECISION AND ORDER

Therefore, it is hereby Decided:

1. That Respondent's sales tax license No. XXXXX is hereby revoked for failure to comply with the provision of the Utah Sales Tax Act, Utah Code Ann. § 59-15-5 (1953).

2. That Respondent is ordered to close the doors of its business and deliver its sales tax license to the Utah State Tax Commission. Failure to comply with this order may result in criminal prosecution taken against the Respondent.

3. The revocation of Respondent's sales tax license is effective immediately, unless the taxpayer requests in writing, within three working days from receipt of this Decision, that the Commission stay the execution of this order for thirty (30) days, provided the taxpayer is able to prove the following conditions have been met:

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

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

DATED this 7 day of August, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco

Commissioner