BEFORE THE STATE TAX COMMISSION OF UTAH
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS OF LAW
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 1824
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
STATEMENT OF CASE
This is an appeal to a formal hearing from an informal decision rendered by the Utah State Tax Commission on XXXXX, which decision affirmed the assessment of penalty and interest on sales and use tax account No. XXXXX. A formal hearing was held on XXXXX in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX, Attorney at Law, and XXXXX represented the Petitioner.
Petitioner stated that the total circumstances surrounding the nonpayment of sales tax had not been considered in the informal decision. Petitioner stated that there was no conscious decision to give other creditors priority over the Tax Commission. Petitioner stated that he did not find out about the problems until XXXXX. Petitioner requested that the penalty be waived or at least reduced to $$$$$.
Petitioner testified that the books of XXXXX were turned over to an accountant in XXXXX-XXXXX in order to reconstruct the records. This accountant failed to do so and Petitioner was forced to hire a second accountant in mid to late XXXXX in order to reconstruct the records.
The liability periods in question are the fourth quarter of XXXXX, the first, second, third and fourth quarters of XXXXX, the first, second, third and fourth quarters of XXXXX, and the first quarter of XXXXX.
CONCLUSIONS OF LAW
At least half of the periods of liability occurred after the Petitioner reconstructed the records. Petitioner did not take reasonable steps to insure that the current accruing liability would be timely filed and paid.
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to affirm the informal decision dated XXXXX. Petitioner's request for waiver of penalty and interest on sales and use tax account No. XXXXX is hereby denied.
The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 10 day of February, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis