BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0308
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 XXXXX, since a required 90%
prepayment was not made. 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.
The
prepayment for the second quarter of XXXXX, was due by XXXXX. On XXXXX, Petitioner learned of embezzlement
by his bookkeeper. Petitioner stated that the bookkeeper traded accounts
receivable checks for cash and wrote herself a check in May. The week the return was due, the situation
came to a head. The bookkeeper was
fired and the records were audited. The
bookkeeper was subsequently found guilty of embezzling $$$$$ from Petitioner
and sentenced by the First District Court.
Petitioner
paid the sales tax for the second quarter of XXXXX by XXXXX. Respondent assessed a penalty of $$$$$ and
interest of $$$$$.
FINDINGS
Petitioner
has been in business since XXXXX and has a good filing history.
Because
the embezzlement occurred so close to the filing date of XXXXX, and since
Petitioner's records were being audited during the week that the return was
due, Petitioner could not have reasonably prepaid the XXXXX second quarter
sales taxes by XXXXX.
Due
to the extraordinary circumstances of this appeal, the Tax Commission, in its
discretion, reduces the penalty to $$$$$.
Interest
was properly assessed on this account.
Petitioner had the use of the money from XXXXX, the date that the Tax
Commission would normally have received it, until XXXXX.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that penalty on
sales and use tax account No. XXXXX for the second quarter of XXXXX be reduced
to $$$$$.
The
Commission hereby affirms the assessment of interest on this account.
The
Collection Division of the Utah State Tax Commission is ordered to adjust its
records in accordance with this decision.
DATED
this 7 day of October, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner