89-0701 - Sales & Use

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX, )

XXXXX. :

:

Petitioner, : FINDINGS OF FACT

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 89-0701

UTAH STATE TAX COMMISSION :

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on the 22nd day of XXXXX, before Joseph G. Linford, Presiding Officer. Petitioner XXXXX was present at the hearing. Respondent was not Represented at the hearing.

After reviewing the evidence and arguments of the parties in the record and the recommendation of the Presiding Officer, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales and use tax.

2. The periods in question are all four quarters of XXXXX and the first two quarters of XXXXX.

3. The business which incurred these sales tax liabilities was XXXXX.

4. The previous owner of this business told Mr. XXXXX that he would not be required to file sales tax returns. Petitioner evidently believed that this statement was true. The tax amount in question was paid in full on XXXXX, XXXXX and true returns were also filed at that time after the Petitioner discovered that returns did have to be filed.

5. XXXXX is no longer in business.

6. Mr. XXXXX has since obtained an order of bankruptcy in bankruptcy case No. XXXXX. This order discharges the penalty and interest assessments by order of the bankruptcy court.

CONCLUSIONS OF LAW

1. Utah Code Ann. §59-1-401 and59-1-402 provide that penalties and interest shall be assessed for late payment of taxes and the late filing of tax returns.

2. Discharges in bankruptcy are effective to discharge penalties and interest assessed under the above statutes.

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 is granted.

DATED this 18th day of January, 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