89-0063 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

dba/XXXXX :

Petitioner ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

v. :

COLLECTION DIVISION OF THE )

STATE TAX COMMISSION OF UTAH : Appeal No. 89-0063

) Acct No. XXXXX

Respondent :

__________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on the 28th day of XXXXX. XXXXX was the hearing officer presiding at the hearing. Petitioner was represented by one of its owners, Mr. XXXXX. No one representing the Respondent was present at the hearing.

Based upon the recommendation of the Presiding Officer and the facts and evidence presented at the hearing, the Tax Commission makes its

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is XXXXX to XXXXX.

3. During this period the Petitioner hired additional employees to help with an increasing work load. Petitioner subsequently discovered that some of these employees were stealing large amounts of money from the Petitioner.

4. Petitioner testified during the hearing that the amounts stolen were in the thousands of dollars and were sufficient to render it virtually impossible for the Petitioner to pay many of their obligations, one of which was the tax in question.

5. Because of these circumstances which were beyond the Petitioner's control the Petitioner asserts that they were unable to pay the taxes concerned, and therefore requested a waiver of penalty and interest.

CONCLUSIONS OF LAW

1. Utah Code Ann. 59-1-401 (1987 Rep., 1989 Supp.) provides that penalties shall be assessed for failure to file a tax due return within the time prescribed by law or for failure to pay a tax due within the time prescribed by law.

2. Utah Code Ann. 59-1-402 (1987 Supp.) provides that interest at the rate of 12% annually shall be charged for late payment of taxes due.

3. Utah Code Ann. 59-1-401(8) (1987 Rep., 1989 Supp.) provides that the Tax Commission may, upon reasonable cause shown, waive or reduce any penalties or interest imposed under the above statutes.

DECISION AND ORDER

The Tax Commission finds that the Petitioner has shown reasonable cause for waiver of the penalty assessed in this case due to the fact that circumstances which created the inability of the Petitioner to pay his taxes were beyond the Petitioner's control. All penalty amounts are, therefore, hereby waived. However, interest in the amount of $$$$$, or the most current amount up to the date of this order as shall be determined by the Collection Division of the Utah State Tax Commission, shall be yet due and payable by the Petitioner. It is so ordered.

DATED this 5th day of October, 1989.

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