90-1653 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-1653

: Account No. XXXXX

_____________________________________

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 were XXXXX and 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.

3. The Petitioner started business in XXXXX. At that time, one of the partners was responsible for filing and paying sales tax returns.

4. In the fall of XXXXX, the partner responsible for filing and paying sales tax returns left the business and the responsibilities for those duties fell to another individual.

5. That individual was not aware that sales tax had to be paid on a quarterly basis.

6. The individual realized at the end of the year when the fourth quarter taxes were due that the prior quarter's taxes should also have been filed and paid.

7. Because the ice cream business is very slow during the winter months, the Petitioner did not have sufficient funds to pay the sales taxes due for the periods in question.

8. The third quarter XXXXX sales tax return was filed and paid on XXXXX. The fourth quarter XXXXX sales tax was filed and paid on XXXXX.

9. Prior returns of the Petitioners were filed and paid in a timely manner.

10. As a result of the late payment of the $$$$$ in sales tax liability for the third quarter of XXXXX, a penalty in the amount of $$$$$ was imposed. As a result of the late filing payment of the $$$$$ in sales tax liability for the fourth quarter of XXXXX, a penalty in the amount of $$$$$ was imposed.

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 forgoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the third quarter XXXXX sales tax. The Tax Commission further finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the fourth quarter XXXXX sales tax. It is so ordered.

DATED this 16 day of January, 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