86-0387 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

UTAH STATE TAX COMMISSION )

COLLECTION DIVISION, :

)

Petitioner, :

) INFORMAL DECISION

v. :

XXXXX, )

: Appeal No. 86-0387

Respondent. ) Sales Tax No. 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 represented the Petitioner. XXXXX represented the Respondent.

Petitioner testified that Respondent owes $$$$$ based on estimated and true returns. He testified that he did not receive responses to his telephone calls concerning the sales tax liability and that no returns were filed for three quarters in XXXXX.

Petitioner testified that she did return three phone calls, and that she cannot afford to pay the bond. She testified that she has been operating at a deficit but wants to make monthly payments to clear up her sales tax liability. If the Tax Commission revokes her sales tax license, Respondent testified she would be unable to pay off the liability.

FINDINGS

1. Respondent was issued a sales tax license, no. XXXXX in care of XXXXX. Respondent was unincorporated at the time.

2. Respondent was responsible for the collection of sales tax on the sales of her 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.

4. The Utah State Tax Commission invested 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 is ordered to close the doors of XXXXX in care of XXXXX and to deliver her 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.

3. The revocation of Respondent's sales tax license is 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 2 day of September, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco

Commissioner