91-0807 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-0807

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

3. The Petitioner opened for business in the spring of XXXXX. Sometime during the third quarter of XXXXX the Petitioners moved the business to their home.

4. Due in part to the move, and in part to a change in the manner in which the account procedures were made, the monies which had been collected as sales tax during the periods in question been inadvertently been spent to finance the on going operations of the business.

5. The lack of funds to cover the necessary sales tax payment was discovered when the fourth quarter XXXXX return was due. Because insufficient funds existed to pay the tax, the Petitioners did not file a sales tax return. This problem continued throughout the first three quarters of XXXXX.

6. The amount in taxes due were: $$$$$, $$$$$, $$$$$, and $$$$$, for the fourth quarter XXXXX; and the first, second and third quarters of XXXXX, respectively.

7. As a result of the failure to timely file and timely pay the taxes due, the Petitioner was assessed penalties in the amount of $$$$$, $$$$$, $$$$$, and $$$$$, for the periods 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

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the above referenced quarters. It is so ordered.

DATED this 9th day of October, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes*

Commissioner Commissioner