BEFORE THE STATE TAX COMMISSION OF UTAH
UTAH STATE TAX COMMISSION :
COLLECTION DIVISION, )
Petitioner, ) INFORMAL DECISION
: SALES TAX LICENSE REVOCATION
: Appeal No. 86-0422
XXXXX, ) Sales Tax No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission from the Collection Division of the Utah State Tax Commission (Petitioner) concerning the revocation of sales tax license No. XXXXX pursuant to Utah Code Ann. § 59-15-3 (1953).
An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner. XXXXX represented the Respondent.
Petitioner stated that Respondent owed a balance of $$$$$ as of XXXXX, which amount included tax, penalty and interest based on the returns filed for the first, second and third quarters of XXXXX, on the return filed for the first quarter of XXXXX, and based on an estimate for the second quarter of XXXXX. The estimated tax for the second quarter of XXXXX was figured based on the past three quarters plus an additional 20%.
Petitioner presented the investigation history at the hearing. The history indicates that on XXXXX, Petitioner told Respondent that, after reviewing the financial statements of XXXXX, Petitioner was of the opinion that Respondent was in a good position to obtain a loan with which to pay the back taxes. Petitioner told Respondent to check with Utah Bank and with another bank of Respondent's choice and to request letters of denial from the loan officers of the banks if the loan applications were rejected. Respondent did not obtain a loan and did not submit letters of denial.
Respondent stated that XXXXX operated as a partnership through XXXXX, at which time XXXXX bought out the partner. Respondent stated that the tax liabilities occurred because Respondent did not have access to the checking account and could not disperse funds to the Tax Commission. Respondent stated that since XXXXX, Respondent has made a good faith effort to file taxes and to make payment. Petitioner had proposed a monthly payment plan to Respondent in which Respondent would pay $$$$$ a month. When questioned why Respondent did not obtain a loan or a letter of denial from the bank, Respondent stated that it is against her ethics to go into debt.
As a successor in interest, Respondent is liable for all taxes, penalty and interest incurred by the partnership prior to XXXXX. Utah Code Ann. § 59-15-10 (1953).
Respondent was issued sales tax license No. XXXXX.
Respondent was responsible for the collection of sales taxes on the sale of 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 collect and remit the full amount of sales taxes for each quarter.
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" Section 59-15-3.
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 (1953).
2. Respondent is ordered to close the doors of XXXXX to business and to deliver its 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 Respondent requests in writing within
three working days from receipt of this decision that the Commission stay the
execution of this order for thirty 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 20 day of November of 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis