87-0293 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

            UTAH STATE TAX COMMISSION,            :

COLLECTION DIVISION,                                        :

            Petitioner,                                                         :

v.                                                                                 :

                                                                                    :

XXXXX,                                                                                 :

            Respondent.                                                     :           INFORMAL DECISION

                                                                                    :           SALES TAX REVOCATION

                                                                                    :           Appeal No. 87-0293

                                                                                    :           Sales Tax No. XXXXX

_____________________________________

            The Collection Division of the Utah State Tax Commission (Petitioner) filed a request for revocation of sales tax license No. XXXXX pursuant to Utah Code Ann.  59-15-3 (1953).  An Informal Hearing on 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 Tax Commission.  XXXXX, Supervisor, and XXXXX, Tax Compliance Agent, represented the Petitioner.  XXXXX, Attorney, and XXXXX represented the Respondent.  Petitioner presented evidence that Respondent was delinquent for the period from the fourth quarter of XXXXX through the fourth quarter of XXXXX. Petitioner presented evidence that the delinquency as of the date of the hearing amounted to approximately $$$$$, including tax, penalty, and interest.  Petitioner also indicated that there has been no return filed nor tax paid for the first quarter of XXXXX, as of the date of the hearing.  Petitioner presented a contact history, showing numerous attempts by Petitioner to resolve this problem with Respondent.  According to the history, Respondent was uncooperative and frequently broke appointments.  Respondent stated that he had had serious health problems during the period in question, but that he has been released from the hospital and is now in a position to repay the liability.  Respondent mentioned an attempt to obtain a loan on the building, which loan would be used to repay the liability.  At the conclusion of the hearing, Respondent was given until XXXXX, to produce evidence that financing had been obtained or that an agreement had been reached between Petitioner and Respondent.  On XXXXX, Petitioner filed a memorandum indicating that Respondent was unable to obtain a loan from his primary source but that Respondent is now negotiating with his relatives for a loan.

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.  59-15-5 (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 the license of "any person violating any provision of the [Sales Tax] Act. . . ." Section 59-15-3.

DECISION AND ORDER

            It is the Decision and Order of the Utah State Tax Commission that Respondent's sales tax license No. XXXXX be revoked for failure to comply with the provisions of the Utah Sales Tax Act, Utah Code Ann.  59-15-5 (1953). 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.  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 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, Respondent must make weekly deposits into the account in the amount of the current accruing sales tax liability.

            DATED this 24 day of June, 1987.

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