BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-2168
UTAH STATE TAX COMMISSION, : Acct.
No. XXXXX
Respondent. :
_____________________________________
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 assess penalty and
interest on sales and use tax account No. XXXXX for XXXXX. 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 represented the
Petitioner.
Petitioner
stated that he was transferred to XXXXX during the periods in question. Petitioner employed an accounting firm to
prepare the quarterly tax returns and hired a relative to be the manager to run
the business while he was gone.
Petitioner stated that the quarterly tax returns were prepared on time
and submitted to the manager for filing and payment. Petitioner was shown copies of checks, a check register and a
given verbal assurances by Petitioner that the quarterly taxes were timely
filed and paid. When Petitioner
returned, Petitioner discovered that the taxes had not been filed or paid. Petitioner has consequently sued the manager
for gross mismanagement. Petitioner
requests a waiver of the penalty and interest.
FINDINGS
Penalty
and interest were properly assessed in this matter. The returns were, in fact, filed late. The selection of a relative to be the new manager was a business
decision for which Petitioner must accept the consequences.
DECISION AND ORDER
Based
on the foregoing, it is the Decision and Order of the Utah State Tax Commission
that Petitioner's request for waiver of penalty and interest on sales and use
tax account No. XXXXX for XXXXX be denied.
The assessment of penalty and interest by the Collection Division of the
Utah State Tax Commission is hereby affirmed.
DATED
this 2 day of February, 1988.
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