87-0132 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION :

OF UTAH, : INFORMAL DECISION

: Appeal No. 87-0132

: Sales Tax No. XXXXX

: Withholding Tax

Respondent. : No. XXXXX

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Collection Division of the Utah State Tax Commission (Respondent) to make a personal penalty assessment against Petitioner for sales and use tax and withholding tax liabilities, including tax, penalty and interest. An Informal Hearing in the above-captioned matter was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the commission. XXXXX represented the Petitioner. XXXXX and XXXXX represented the Respondent. Petitioner stated that XXXXX is no longer in business and requests a waiver of the tax, penalty and interest. Petitioner did not dispute the assessment of taxes but noted that he has just been through a chapter 7 bankruptcy and has no assets with which to pay the liability. Respondent presented a stock and asset purchase agreement in which Petitioner as purchaser of the business in XXXXX agreed to assume any and all liabilities in connection with the business. Respondent stated that the liability in question was not discharged in bankruptcy and stated that the personal penalty assessment was properly made pursuant to Utah Code Ann. 59-2-1321 (1953) (old Section 59-10-22). Respondent presented evidence of a sales tax delinquency for the XXXXX, for all of XXXXX, and for the XXXXX. Respondent also presented evidence of a withholding tax delinquency for the XXXXX and the XXXXX.

FINDINGS

Petitioner had the burden of proof to establish that Respondent made the personal penalty assessment in error. Petitioner failed to meet this burden of proof. Respondent properly made the personal penalty assessment pursuant to Utah Code Ann.59-2-1321 (1953) (old Section 59-10-22).

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of the personal penalty assessment be denied. The personal penalty assessment as prepared by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 11 day of December, 1987.

BY ORDER OF THE STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner