86-0381 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

UTAH STATE TAX COMMISSION :

COLLECTION DIVISION, )

:

Petitioner, )

: INFORMAL DECISION

v. )

:

XXXXX, )

: Appeal No. 86-0381

Respondent. ) Sales Tax Nos. XXXXX,

: XXXXX & XXXXX

_____________________________________

STATEMENT OF CASE

An Informal Hearing was held on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Utah State Tax Commission. XXXXX and XXXXX represented the Petitioner. XXXXX represented the Respondent.

Petitioner testified that Respondent, XXXXX, has operated under three separate sales tax licenses. The first sales tax license, No. XXXXX, was issued to Respondent as an individual, and XXXXX, owner, subsequently filed a Chapter 13 petition. The second sales tax license, No. XXXXX, was issued to Respondent as a corporation, which was subsequently dissolved by Respondent. The third sales tax license, No. XXXXX, was issued to Respondent as an individual and Respondent owes sales tax under that license. In fact, Petitioner said, Respondent has liabilities on all three licenses. Petitioner testified that Respondent is uncooperative and is consistently late in filing returns and consistently does not pay the entire sales tax liability.

Respondent testified that he filed a Chapter 13 petition on his first sales tax license and the Tax Commission debt was paid. He testified that he dissolved the corporation to which the second sales tax license was issued, and sold his assets to pay debts. He testified that money was paid to the Tax Commission. Respondent further testified that he desires to make arrangements to pay the sales tax liability.

FINDINGS

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

1. Respondent was issued a sales tax license nos. XXXXX, XXXXX, and XXXXX, in care of XXXXX.

2. Respondent was responsible for the collection of sales tax on the sales of his goods and services and was required to remit these taxes to the Utah 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. Respondent currently owes $$$$$ from goods or services sold under sales tax license no. XXXXX.

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 licenses nos. XXXXX, XXXXX, and XXXXX are hereby revoked for failure to comply with the provisions of the Utah Sales Tax Act, Utah Code Ann. § 59-15-5.

2. That Respondent is ordered to close the doors of XXXXX in care of XXXXX and to deliver his sales tax licenses to the Utah State Tax Commission. Failure to comply with this order may result in criminal prosecution being taken against the Respondent.

3. The revocations of Respondent's sales tax licenses are effective immediately, unless the Respondent requests in writing, within three working days from the receipt of this Decision, that the Commission stay the execution of this Order for (30) days, provided the Respondent 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. The bond must be in the form of a cashier's check, certificate of deposit, 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 Respondent must make weekly deposits into the account in the amount of the current accruing sales tax liability.

DATED this 3 day of September, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco

Commissioner