BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1446
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Joseph G. Linford, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1.
The tax in question is sales tax.
2. The periods in question are the second and
third quarters of XXXXX, and the second and third quarters of XXXXX.
3. During the periods in question, Petitioner
suffered some financial stress which, according to Petitioner's representative
at the hearing, XXXXX, rendered it difficult for Petitioner to pay its sales
tax collections to the state.
4. Petitioner went out of business soon after
the periods in question. The assets and
business name of Petitioner were sold and the proceeds used to pay off
Petitioner's creditors, including payment of some of the amount owed to the Tax
Commission. XXXXX states that there are
no assets or money remaining to pay the penalty and interest, although the tax
amounts have been paid.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
The
Tax Commission recognizes the plight of Petitioner, but finds insufficient
cause for the waiver of penalty and interest.
The tax funds in question were funds to which the state was entitled and
which Petitioner should have remitted to the state. Instead, Petitioner retained the tax funds until such time as
Petitioner felt it was able to remit them.
Financial hardship and distress alone is not sufficient by itself to
warrant a waiver of penalty and interest.
If such were sufficient, then the Tax Commission would undoubtedly be
overwhelmed with taxpayers making delinquent payments of taxes because of
financial stress and inability to pay.
It is all too easy for a taxpayer to neglect the payment of taxes and to
use those funds, which belong to the state, for other pressing demands. The very purpose of penalty and interest
assessments is to encourage taxpayers to remit funds to which the state is
entitled on a timely basis in order to avoid the payment of penalty and
interest charges.
As
to the limited assets available to pay the penalty and interest amounts, it may
be possible for some arrangement to be established with the Collection Division
whereby these amounts can be paid on an installment basis until paid in full.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the second and third quarters of XXXXX, and the second and third quarters of
XXXXX. It is so ordered.
DATED
this 15 day of February, 1991.
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