88-2248 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner, :

: FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-2248

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner was XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The periods in question are the second quarter XXXXX, the fourth quarter XXXXX and the second quarter XXXXX. The Petitioner purchased the XXXXX located at XXXXX, Utah, in the fall of XXXXX. Because the business proved unprofitable, Petitioner sold the business on XXXXX.

3. Because of poor business and a lack of income, the Petitioner did not file its second quarter XXXXX sales tax until XXXXX. At that time, the Petitioner filed the return and paid the tax due in the amount of $$$$$.

4. For the same reasons, Petitioner did not pay its fourth quarter XXXXX sales tax until XXXXX, at which time it paid $$$$$ in taxes due.

5. Petitioner was assessed a penalty in the amount of $$$$$ for the late payment and filing of the second quarter XXXXX sales tax, and was assessed a penalty in the amount of $$$$$ for the late payment of the fourth quarter XXXXX sales tax. Petitioner was also assessed a $$$$$ penalty for having failed to timely file and pay sales tax due for the second quarter of XXXXX however, Petitioner sold the business prior to the beginning of that quarter.

6. In XXXXX the Petitioner met with a representative of the Commission in an attempt to resolve the past due account. On XXXXX, Petitioner paid those taxes due and made a request for a waiver of the penalties and interest associated with those quarters.

7. In XXXXX, Petitioner was notified that his waiver request had been denied. Petitioner appealed that decision by way of a letter filed XXXXX.

8. The Petitioner did not receive any further communication from the Commission in response to his XXXXX, appeal request until this matter was originally set for hearing on XXXXX.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(A)).

DECISION AND ORDER

The Tax Commission finds that based upon the foregoing evidence, sufficient cause has not been shown which would justify a waiver of the penalties associated with the second and fourth quarter XXXXX sales tax. Because of the unusual delay in processing this appeal, no interest is to be imposed for the period XXXXX through XXXXX. The Commission also finds that due to the fact that the Petitioner no longer owned the business prior to the second quarter XXXXX any penalties or interest associated with that period are waived.

DATED this 9 day of May, l990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner