89-0033 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

XXXXX, :

Petitioner ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. ) AND FINAL DECISION

:

) Appeal No. 89-0033

AUDITING DIVISION OF THE :

STATE TAX COMMISSION OF UTAH ) 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 Tax Commission. Present and representing the Petitioner was XXXXX. Present and representing the Respondent were XXXXX, Assistant Attorney General, and XXXXX.

The Petitioner initially filed an appeal to the Commission from the Auditing Division's determination that a sales tax deficiency existed which arose from the Petitioner's failure to collect sales tax on the rental of portable toilets. Prior to formal hearing on the matter, however, the Petitioner withdrew his appeal regarding the deficiency, and requested that the Commission waive the penalty and interest associated with the deficiency assessment.

Hearing on the penalty and interest waiver request issue was held. Based upon the evidence and testimony presented at that hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is XXXXX through XXXXX.

3. The Petitioner operated a portable toilet rental business.

4. At one time the Petitioner had filed tax returns. In XXXXX, the Petitioner stopped filing sales tax returns because he believed that the sales and use taxes were not applicable to this situation.

5. Shortly after XXXXX the Petitioner was contacted by the Tax Commission regarding his having failed to file sales tax returns, however, no further contact was made with the Petitioner until the audit which was conducted in XXXXX.

6. As a result of the audit, a sales tax deficiency in the amount of $$$$$ was found to exist.

7. A penalty of $$$$$ was assessed for the late filing and payment of the sales tax in question.

8. The Petitioner requested that the penalties and interest be waived for two reasons: (1) The Petitioner argued the delay in the payment of these sales tax was due in part to the Commission having failed to follow up on their initial contact with Petitioner in 1981; and (2) The Petitioner is not financially able to pay the penalty and interest owing.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon showing a reasonable cause. Utah Code Ann. §59-1-401(8).

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver or reduction of the penalty and interest in this case. Therefore, Petitioner's request to waive the penalties and interest for the audit period XXXXX through XXXXX is denied.

DATED this 27th day of February, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner