SALES

86-0525

signed 12/30/86

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX :

/dba/XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0525

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

_____________________________________

STATEMENT OF CASE

An Informal Hearing was held on November 12, 1986. James E. Harward, Hearing Officer, heard the matter for the Utah State Tax Commission. XXXXX, represented the Petitioner.

Petitioner testified that he was forced to declare bankruptcy in XXXXX, and that the taxes for the October to December, XXXXX, quarter and the January to March, XXXXX, quarter were paid by the bankruptcy court. Four years later Petitioner was notified by the Utah State Tax Commission that it owed unpaid penalty and interest accruing from the October to December, XXXXX, and January to March, XXXXX, quarters. Petitioner protested the delinquency assessment declaring that during the sales tax quarters in question, he had no control over the assets of the business or when taxes would be paid.

DECISION AND ORDER

Based on the foregoing facts and on the provisions of the Title 11 of the United States Code, it is the Decision and Order of the Utah State Tax Commission that the penalty and interest assessment for the sales tax quarters October to December, XXXXX, and January to March, XXXXX, be waived. While taxes owed to a state are not dischargeable in bankruptcy, penalty and interest assessments are. The taxes were paid by the bankruptcy court and penalty and interest should not have been assessed.

DATED this 30 day of December, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R.H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner

NOTICE: You have 30 days after the date on the Mailing Certificate to request a Formal Hearing.

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