86-0236 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

UTAH STATE TAX COMMISSION

COLLECTION DIVISION, )

:

Petitioner, )

: INFORMAL DECISION

v. ) SALES TAX REVOCATION

:

XXXXX, )

: Appeal No. 86-0236

Respondent. ) Sales Tax License XXXXX

_____________________________________

STATEMENT OF CASE

This is a Decision from an Informal Hearing regarding the Sales Tax License Revocation of XXXXX in care of XXXXX (Respondent).

The Sales Tax License Revocation Hearing was held on XXXXX at 3:00 p.m. in the office of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for and in behalf of the Tax Commission. XXXXX and XXXXX represented the Collection Division (Petitioner). The Respondent was represented by XXXXX and XXXXX.

During the hearing the Respondent stated that he expected to pay his tax liability with the income received from a government contract. The Respondent's plan did not materialize due to unforeseen problems relating to the contract. The Respondent lost money on the government contract even though he expected a profit of $$$$$. The Respondent also stated that approximately $$$$$ of the government contract had been attached by the IRS. The Respondent still owes the IRS about $$$$$.

The Petitioner stated that the Respondent made his last payment on February 24, XXXXX, and that the Respondent was behind five payments as of April 8, XXXXX. The Petitioner also stated that the Respondent did not file a return or pay a tax for the first quarter of XXXXX.

After reviewing the evidence presented at the hearing, the Commission makes the following determinations:

1. Respondent was issued Sales Tax License No. XXXXX in care of XXXXX. Respondent was a corporation at the time.

2. Respondent was responsible for the collection of sales taxes on the sale of his goods and services and was required to remit these taxes to the State Tax Commission. Utah Code Ann. 59-15-5 (1953). Respondent did not properly remit the full amount of sales tax collected each quarter.

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 provisions of the Utah Sales Tax Act, Utah Code Ann. 59-15-5.

2. That Respondent, in care of XXXXX, is ordered to close the doors of his business and deliver his sales tax license to the Utah State Tax Commission. Failure to comply with this order may result in criminal prosecution being taken against the Respondent. The Revocation of the Respondent's Sales Tax License is effective immediately.

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