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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner