86-2151 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

UTAH STATE TAX COMMISSION

COLLECTION DIVISION, :

: INFORMAL DECISION

Petitioner, : SALES TAX LICENSE REVOCATION

v. : Appeal No. 86-2151

: Sales Tax No. XXXXX

XXXXX, )

a Corporation, )

:

Respondent. :

_____________________________________

STATEMENT OF CASE

Petitioner requested a revocation oŁ sales tax license No. XXXXX and a hearing was scheduled for XXXXX, at 10:00 a.m. in Room 504 of the Heber M. Wells Building. XXXXX, a director of the corporation, was served with the Notice of Hearing on XXXXX. The Informal Hearing was heard by James E. Harward, Hearing Officer. XXXXX, XXXXX, and XXXXX represented Petitioner. XXXXX and XXXXX represented Respondent.

XXXXX's field notes indicate that he began contacting the corporation's directors in XXXXX. XXXXX had several meetings with XXXXX, XXXXX, and XXXXX (an employee). XXXXX's notes indicate that Respondent was generally unwilling or unable to pay the full amount of taxes due. At the Informal Hearing, XXXXX indicated that Respondent owes the State of Utah $$$$$.

XXXXX testified that the lien filed is in excess of $$$$$ and that he is working with a lender to pay it off. However, there is a $$$$$ lien on the property which has created problems with the financial institution.

FINDINGS

After reviewing the evidence presented and the written documentation submitted, the Commission makes the following findings:

1. Respondent was issued sales tax license No. XXXXX in care of XXXXX, XXXXX, and XXXXX, Directors; and XXXXX, corporate agent. Respondent was a corporation at the time.

2. Respondent was responsible for the collection of sales tax on the sales of its goods and services and was required to remit these taxes to the Utah State Tax Commission. Utah Code Ann. §59-15-5 (Supp. 1986).

3. Respondent did not properly remit the full amount of sales tax collected each quarter. Respondent did not file a sales tax return required each quarter.

4. Utah State Tax Commission has the authority to revoke the sales tax license of "any person violating any provision of this [Sales Tax] Act . . . ." Utah Code Ann. §59-15-3 (Supp. 1986).

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission:

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 (Supp. 1986).

2. That Respondent is ordered to close the doors of XXXXX in care of XXXXX, and XXXXX, XXXXX, XXXXX, and XXXXX, and to deliver the sales tax license to the Utah State Tax Commission. Failure to comply with this order may result in criminal prosecution being taken against Respondent or Respondent's representatives.

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 (30) days, provided the Respondent is able to prove that 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 11 day of March, 1987.

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

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