BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 90-1650
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal telephone 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 first quarter of XXXXX through the second quarter of XXXXX.
3. Petitioner's representative, XXXXX, stated that during the periods in question, the tax matters of Petitioner's business were handled by XXXXX partner. XXXXX was in charge of the technical and operational aspects of the business while his partner was in charge of the business operations, such as payment of taxes, bills, etc.
4. During the periods in question, XXXXX partner suffered some difficult personal problems and neglected the payment of the sales tax. XXXXX was aware of this difficulty and several times attempted to persuade his partner to pay the sales taxes in a timely manner.
5. Since the periods in question, Petitioner's business has been sold to another person and XXXXX partnership was dissolved. The taxes have been paid, but XXXXX is still liable for the penalty and interest assessments.
6. Petitioner requests that the penalty and interest be waived in this case because the liability for the penalty and interest was incurred as a result of the mismanagement of XXXXX partner, who has since left the state, and whom XXXXX cannot reach in order to obtain payment for the penalty and interest in question.
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
XXXXX was negligent in not insuring that the sales taxes were made in a timely manner for the periods in question. XXXXX was a partner in Petitioner's business and, therefore, is responsible for the liabilities of the business. Although the difficulties initially may have occurred because of XXXXX partner's mismanagement, XXXXX was aware of the problems and was in a position where he may have been able to prevent or mitigate the difficulties associated with this case.
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 first quarter of XXXXX through the second quarter of XXXXX. It is so ordered.
DATED this 15 day of February, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis