BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX, )
:
Petitioner, )
: FINDINGS
OF FACT,
v. ) CONCLUSIONS OF LAW
: AND FINAL
DECISION
) Appeal
Nos. 90-0089
COLLECTION
DIVISION OF THE : to 90-0090
UTAH STATE TAX
COMMISSION, )
: Account
Nos. XXXXX & XXXXX
Respondent. )
______________________________
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 taxes in question are sales and withholding taxes.
2.
The periods in question are the third and fourth quarters of XXXXX, the first and
second quarters of XXXXX and the first and second quarters of XXXXX. All of these periods apply to the sales tax
account, while only the fourth quarter of XXXXX and the second quarter of XXXXX
apply to the withholding tax account.
3.
Petitioner contends that penalty and interest amounts should be waived in this
case because during the time periods in question Petitioner lost the services
of a bookkeeper who had been working for the Petitioner for some time. This bookkeeper had written a custom designed
computer program for Petitioner and when she left Petitioner's business she
left no manual or any other indication of how to operate the software which she
had designed. Petitioner subsequently had to go through three separate
bookkeepers who all had to be dismissed because of their inability to operate
the computer program designed by Petitioner's first bookkeeper. Petitioner alleges that many attempts were
made to gain an understanding of this computer program but to no avail. Consequently, several records including
records used for tax purposes were irretrievable. Finally, Petitioner had to replace the program designed by their
first bookkeeper.
4.
Petitioner also puts forward as causes for waiver, the loss of the lease on
their original building and a forced move to a new location which cost
considerable time and money and also caused a loss of business for a period of
time. Petitioner also alleges the
incompetency of their bookkeepers and the seizure of their bank account by
federal tax authorities without warning which caused their State tax checks to
be dishonored.
5.
Based upon these facts, by letter dated XXXXX, the Tax Commission waived all
penalties but not interest associated with the Petitioner's withholding tax
account No. XXXXX which concerned the fourth quarter, XXXXX, and the second
quarter, XXXXX. Petitioner, therefore,
at the hearing did not contend for any further waiver of interest on the
withholding tax account but requested only a waiver of penalties and interest
on the sales tax account.
6.
By letter dated XXXXX, the Commission denied the Petitioner's request for
waiver of penalties and interest on sales tax account No. XXXXX which concerns
all of the periods in question stated in paragraph number two above. The Commission had the same information
before it in considering this request as was before the Commission in
considering the waiver of the withholding tax penalties.
CONCLUSIONS OF LAW
1.
Utah Code Ann. §§59-1-401 and 59-1-402 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 penalty or interest assessments imposed
under the above statutes.
Petitioner's
request for waiver of interest is denied for all periods in question, but it is
hereby ordered that interest shall be recomputed based upon the reduction in
the penalties assessed.
DATED
this 17 day of May, 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