BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
UTAH STATE TAX
COMMISSION :
COLLECTION
DIVISION, )
:
Petitioner, ) INFORMAL DECISION
: SALES TAX
LICENSE REVOCATION
v. )
: Appeal No.
86-0422
XXXXX, ) Sales Tax No. XXXXX
:
Respondent. )
_____________________________________
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.
FINDINGS
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
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner