BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-0536
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. G. Blaine Davis, Administrative Law Judge, 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 quarter XXXXX, the second, third and fourth quarters XXXXX, the first, second, third and fourth quarters XXXXX, the first quarter XXXXX and the first quarter XXXXX.
3. The Petitioner represented that he was invested into the real estate market in apartment buildings, when the real estate market collapsed in the early XXXXX. It was at that time they opened the present business of The XXXXX which proved to be successful, and they subsequently opened two more bookstores during the next two years. Although the bookstores were moderately successful, they were fighting economic problems created from earlier years, and were under constant threat from other creditors to shut down their businesses to try to collect for prior obligations.
4. The Petitioner has paid to the Tax Commission a sum in excess of $$$$$ in penalties and interest, and they still owe the Internal Revenue Service over $$$$$, all of which is penalties and interest, and he maintains that he is struggling desperately to try to become current so that he can then stay current.
5. The second quarter of XXXXX was filed timely, but paid late, and had penalties of 20% imposed.
6. The third quarter of XXXXX was filed timely and approximately $$$$$ was paid timely with the return, which paid it in full except for slightly over $$$$$, and a $$$$$ penalty was then imposed. The shortfall was apparently just a misreading of the amount due when the check was prepared.
7. For the fourth quarter XXXXX, the Petitioner filed the return timely, but payment was not made timely so a 10% late payment penalty was imposed on the full amount. However, payments were made within 90 days of the due date which totaled $$$$$.
8. The Petitioner has been working closely with the collection agents to try to bring the matter current, and since getting behind he has put forth a good faith effort to try to make the necessary payments and file his returns. Several of the returns were filed timely, but without payment for lack of funds.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the late filing penalty associated with the second quarter of XXXXX to reduce the penalty for that quarter to a 10% late payment penalty and to further waive the late payment penalty of $$$$$ for the third quarter XXXXX. In addition, sufficient cause has been shown which would justify a waiver of $$$$$ of the penalty for the fourth quarter XXXXX. Interest should also be adjusted so that Petitioner has not paid
interest on the waived penalties. However, sufficient cause has not been shown which would justify a waiver of any of the other penalties or interest associated with the stated periods in questions. It is so ordered.
DATED this 6th day of December, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes