BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner :
: FINDINGS
OF FACT,
v. : CONCLUSIONS OF LAW
: AND FINAL DECISION
: Appeal
Nos. 89-1948
COLLECTION
DIVISION OF THE : to 89-1949
UTAH STATE TAX COMMISSION :
Respondent : Account No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Utah
Administrative Procedures Act for a formal hearing on XXXXX, before Joseph G.
Linford, Presiding Officer. The
Petitioner was represented by XXXXX. No
one representing the Respondent appeared 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 and transient room tax.
2.
The periods in question are the second and fourth quarters of XXXXX.
3.
Previous to the periods in question, the Petitioner's business, a bed and
breakfast operation called XXXXX, was managed almost solely by XXXXX. Ms. XXXXX was a trusted employee who did a
very good job for the Petitioner in managing this enterprise. Just prior to and during the periods in
question, Ms. XXXXX discovered she had terminal cancer and has since passed
away. Because of the difficulty of Ms.
XXXXX battling the cancer while also running the business, an assistant, XXXXX,
was hired to take over many of Ms. XXXXX's duties.
4.
During this time, when Mr. XXXXX was helping to operate the business,
Petitioner's husband was diagnosed as having prostrate gland cancer which
required Ms. XXXXX and her husband to travel to Salt Lake City for surgery and
treatment. When Petitioner returned to
St. George, Petitioner discovered that Mr. XXXXX had not been filing and paying
the taxes in a timely manner. As soon
as this was discovered, Petitioner took immediate steps to rectify the
situation.
5.
In addition to the sales taxes, Petitioner's withholding taxes were also
subject to these difficulties.
Petitioner appealed to the Utah State Tax Commission for a waiver or
penalty and interest on the withholding tax, and by
letter dated XXXXX, the Tax Commission waived
all penalties associated with withholding tax.
These same circumstances which caused the late filing and payment of the
sales and transient room taxes also caused the late filing and payment of the
withholding taxes.
6.
Petitioner now requests a waiver of the penalty assessed on the sales and
transient room taxes in this case.
CONCLUSIONS OF LAW
1.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall
be imposed for the late payment and filing of taxes.
2.
Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon
reasonable cause shown, waive or reduce penalties and interest assessed under
the above statutes.
3.
Such reasonable cause for waiver of the penalty has been shown in this case. The severe illness of Petitioner's employee,
who was solely responsible for the filing and payment of the taxes in question,
and her consequent inability to properly train and instruct her replacement in
doing so, coupled with the fact that under the same circumstances the Tax
Commission has previously waived withholding tax penalties, indicate that
reasonable cause for waiver of the penalties does exist in this case.
DECISION AND ORDER
Based
upon the foregoing, it is the decision and order of the Utah State Tax
Commission that Petitioner's request for waiver of penalties on the sales and
transient room taxes be granted.
Interest shall be recalculated to account for the waiver of the penalty.
DATED
this 6TH day of August, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner