87-2168 - Sales

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