BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0222
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess penalty and
interest on Sales and Use Tax Account No. XXXXX for the period from the fourth
quarter of XXXXX through the first quarter of 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. XXXXX represented the Petitioner.
In
XXXXX Petitioner bought the XXXXX as a retirement investment. Petitioner's parents ran the store until
Petitioner could retire and take over.
Petitioner turned the business entirely over to his parents, trusting
that the parents would take care of all business transactions including the
payment of taxes. The parents
frequently assured Petitioner that all was well and that taxes were being paid
every three months. Not until April of
XXXXX was Petitioner notified that there was any problem with the payment of
taxes.
Respondent
determined that $$$$$ in back taxes were due for the period from October of XXXXX
through March of XXXXX. Respondent
assessed a penalty of $$$$$ and interest of $$$$$.
Petitioner
released his parents from the management of the store, but by this time was
left with almost $$$$$ in debt.
Petitioner sold the store in November of XXXXX, mortgaged his home, took
out a loan from a bank and made an agreement with one creditor in which
Petitioner would build a home to pay off a particular debt. Petitioner has paid the tax and interest due
on account No. XXXXX and requests a waiver of the penalty.
Findings
Petitioner
was responsible to insure that the store was being properly managed. It is apparent that the parents withheld
material information from Petitioner, i.e., that taxes and other bills were not
being paid. However, the withholding of
this material information could easily have been discovered by simply prudent
business practices of reviewing books including business receipts, business
expenses, and quarterly tax payments as well as check stubs and check ledgers. The Tax Commission is sympathetic with the
plight and circumstances of the Petitioner but finds no compelling reason to
deviate from the statutory requirements to impose the penalties.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that the penalty on
Account No. XXXXX from the fourth quarter of XXXXX through the first quarter of
XXXXX be sustained.
DATED
this 15 day of October, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco G.
Blaine Davis *
Commissioner Commissioner