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