90-1772 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

:

: Appeal No. 90-1772

: 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 third and fourth quarters of XXXXX, and the first and second quarters of XXXXX.

3. Petitioner's owner, XXXXX, testified that during the periods in question he did not have the means to determine the amount of tax owed, but as soon as he was able to determine the amounts owed for the periods in question he paid the taxes.

4. Petitioner's difficulty in determining the tax amounts was due to XXXXX's divorce during the periods in question. He stated that he concentrated on divorce matters and did not keep adequate track of his business records. These records were located in his previous wife's home and at other locations. XXXXX stated that there was a financial burden because of the divorce and he was not able to hire an accountant to help him with his tax matters, but as soon as he was financially able to hire an accountant he did so and took care of his tax matters. XXXXX also stated that his major interest in the business was not so much in running the business as in furthering his aviation career.

5. XXXXX contended that he had no desire to avoid the tax in question, and that the penalty and interest amounts are excessive compared to the actual tax amount of $$$$$ for the periods in question.

6. The original penalty was in the amount of $$$$$, but by letter dated XXXXX, the Commission reduced the penalty to $$$$$. Combined with corresponding interest as of that date, the amount due was $$$$$.

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

Sufficient consideration has already been given to the circumstances of this case by the earlier Commission decision to reduce the amount of penalty. It is clear that Petitioner was negligent in not filing and paying the taxes in a timely manner and a penalty is, therefore, appropriate. Interest also should not be waived because the state was deprived of the use of the tax funds in question for a period of time through no fault of its own and should be compensated for that loss of use.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties associated with the third and fourth quarters of XXXXX, and the first and second 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