87-0027 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

UTAH STATE TAX COMMISSION, :

COLLECTION DIVISION, : INFORMAL DECISION

Petitioner, : SALES TAX LICENSE REVOCATION

v. : Appeal No. 87-0027

XXXXX ) Sales Tax No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is a decision from an Informal Hearing regarding the sales tax license revocation of XXXXX, in care of XXXXX (Respondent) requested by the Collection Division of the Utah State Tax Commission (Petitioner).

The sales tax license revocation hearing was held on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Utah State Tax Commission. XXXXX represented Respondent. XXXXX, Tax Compliance Agent, represented the Petitioner.

Petitioner testified the Respondent has been in business from XXXXX, to the present time, and that Respondent owes the state of Utah $$$$$. This figure is based on true returns which were filed, sometimes late and with no money. Petitioner testified Respondent has not obtained a loan to pay off the tax delinquency and that Respondent could only pay $$$$$ a month which would not even cover the interest due the state. Respondent testified that the business has had problems with employees, that priorities have been in the wrong place and that he wants to get everything current. Respondent testified that he is responsible for the tax delinquency but that he can't get loans and if his home sells he could pay $$$$$ over to the State. After reviewing the evidence presented, the Commission makes the following determinations:

1. Respondent was issued sales tax license No. XXXXX in care of XXXXX. Respondent was a sole proprietorship at the time.

2. Respondent was responsible for the collection of sales taxes on the sales of his 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.

4. 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. . . ." Utah Code Ann. 59-15-3 (Supp. 1986).

DECISION AND ORDER

Therefore, it is the Decision and Order of the Utah State Tax Commission that:

1. 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. Respondent is ordered to close the doors of XXXXX in care of XXXXX 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. 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 6 day of May, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen G. Blaine Davis

Chairman Commissioner

Joe B. Pacheco Roger O. Tew

Commissioner Commissioner