87-1914 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

COLLECTION DIVISION OF THE : INFORMAL DECISION

UTAH STATE TAX COMMISSION, : SALES TAX REVOCATION

Petitioner, :

v. : Appeal No. 87-1914

XXXXX ) Sales Tax No. XXXXX

Respondent. :

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Informal Hearing on XXXXX. James E. Harward, Hearing Officer, Heard the matter for the Tax Commission. XXXXX appeared representing the Petitioner. XXXXX appeared representing the Respondent.

Petitioner presented evidence that the sales tax account No. XXXXX was reviewed in XXXXX, and found that there were numerous quarters beginning in XXXXX, which were not filed nor paid. After working the account, there is approximately $$$$$ remaining outstanding. Numerous attempts have been made by Petitioner to reconcile the account and collect the outstanding account. The Respondent submitted two letters from banks denying applications for loans for the purpose of paying off the delinquent sales tax. Respondent indicated that he owes the IRS substantial amounts of money, and has paid to them approximately $$$$$ to date. In XXXXX, the IRS will be paid off and approximately $$$$$ a month could be applied towards the outstanding liability.

DECISION AND ORDER

The Tax Commission after reviewing the evidence and the history of the account and the attempts at collection, determine that based on the past history the Respondent is not able to pay back sales tax and will not be able to do so in the future. Therefore, the Tax Commission revokes sales tax license No. XXXXX on the grounds that Respondent has failed to comply with the statutes of the State of Utah, and it does not appear that he has the ability nor the inclination to pay the account. 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 9 day of December, 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