87-0280 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

UTAH STATE TAX COMMISSION, :

COLLECTION DIVISION, : INFORMAL DECISION

Petitioner, : SALES TAX REVOCATION

v. : Appeal No. 87-0280

XXXXX ) Sales Tax No. XXXXX

_____________________________________

STATEMENT OF CASE

This is a decision from an Informal Hearing regarding the sales tax license revocation of XXXXX (Respondent) requested by the Collection Division of the Utah State Tax Commission (Petitioner). An Informal 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, Supervisor, and XXXXX, Tax Compliance Agent, represented the Petitioner. XXXXX, Attorney at Law, and XXXXX, represented the Respondent. Petitioner presented evidence that the liability periods in question are XXXXX, and that the tax, penalty, and interest as of the date of the hearing, amounted to $$$$$. Petitioner further noted that there was no record of filing or payment for XXXXX. Petitioner recommended revocation of the sales tax license. Respondent agreed with the amount of the sales tax liability but noted a good prior history of payment and expressed a willingness to work out a repayment agreement with Petitioner. Petitioner then agreed to negotiate. The hearing was continued for thirty (30) days to allow the parties sufficient time to arrive at and file the repayment agreement. No repayment agreement was forthcoming. On XXXXX, Respondent filed a letter with the Tax Commission stating that Respondent has filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Division of Utah and stated that the provisions of the automatic stay apply. No notice of filing was forthcoming from the U.S. Bankruptcy Court. On XXXXX, the Hearing Officer inquired of the clerk of the bankruptcy court and was told that XXXXX has not filed a Chapter 11 petition.

FINDINGS

1. Respondent was issued sales tax license No. XXXXX.

2. Respondent was responsible for the collection of sales taxes on the sale of his goods and services and was required to remit these taxes to the State Tax Commission. Utah Code Ann.59-12-107 (1953).

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 license of "any person violating any provisions of this chapter [sales and use tax act]. . . ." Utah Code Ann.59-12-106 (1953).

DECISION AND ORDER

Therefore, it is hereby decided 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.59-12-107 (1953).

2. Respondent is ordered to close the doors of XXXXX to business 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 Respondent.

3. The revocation of Respondent's sales tax license is effective immediately unless Respondent requests in writing, within three (3) working days from the receipt of this decision, that the Commission stay the execution of this order for thirty days, provided 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 5 day of August, 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

^^