BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX,
:
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
Respondent. :
_____________________________________
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
$$$$$.
FINDINGS
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.
FINAL DECISION
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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner