90-1570 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 90-1570

UTAH STATE TAX COMMISSION, :

: Account No.

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, 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 third and fourth quarters of XXXXX, all four quarters of XXXXX, and the first quarter of XXXXX.

3. The Petitioner purchased the business in XXXXX. At that time he hired an accountant who was responsible for the filing and payment of all applicable and necessary taxes.

4. During the course of the years, the Petitioner would specifically ask the accountant if the necessary taxes were being paid and received assurances from him that they were.

5. In early XXXXX the Petitioner's representative received notice from the Tax Commission that sales tax for the above mentioned periods had not been received.

6. The Petitioner's representative confronted the accountant who responded that he assumed that the representative knew that the accountant had failed to file the returns on time. At that time the accountant was fired from his job.

7. The Petitioner hired a new accountant who set up a payment schedule with the Commission. That repayment schedule has been adhered to the Petitioner's representative testified that, to his recollection, a total sales tax deficiency in the amount of $$$$$ to $$$$$ was assessed as a result of the failure to pay the returns in question.

8. A penalty in the amount of $$$$$ was assessed.

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

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the third and fourth quarters XXXXX, all four quarters of XXXXX, and the first quarter XXXXX, to an amount of $$$$$. It is so ordered.

DATED this 27 day of November, 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