BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal
Nos. 91-0817 and
: 91-0818
_________________________
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 was
XXXXX.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The taxes in question are sales and
withholding taxes.
2. The sales tax periods in question are the second
and third quarters of XXXXX. The
withholding tax periods in question are XXXXX and XXXXX.
3. In XXXXX, the controller responsible for
filing and paying the Petitioner's taxes was replaced. Approximately two months later the
replacement controller was killed in a plane accident.
4. After the death of the replacement
controller, the tax preparation matters were temporarily given to a CPA firm
until a third controller could be hired.
5. A third controller was hired in XXXXX,
however, due to his inability to adequately handle the books of the Petitioner,
he was replaced in XXXXX of that year.
6. In XXXXX, a consultant hired to assist the
controller discovered that the withholding liabilities for XXXXX and XXXXX had
not been paid, and that the second quarter sales tax return for XXXXX had not
been paid. Upon that discovery, the returns were filed and paid, and an attempt
to clear up the books of the Petitioner was undertaken.
7. The second and third quarter XXXXX sales tax
returns were filed and paid on XXXXX.
The withholding tax returns for XXXXX and XXXXX, were paid on XXXXX, and
the withholding tax return for XXXXX, was filed and paid on XXXXX.
8. As a result of the late filing and payment
of the sales tax returns, a penalty in the amount of $$$$$ was assessed for the
two quarters in question. As a result
of the late filing and payment of the withholding taxes in question, a penalty
in the amount of $$$$$ was assessed for the three 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
In
the present case, although the untimely death of the controller in late XXXXX,
was unfortunate, the Commission is not convinced that there exists a
relationship between the time of that death and the periods in question. The first sales and withholding taxes that
would have been due after the passing of the controller did not occur until
XXXXX, which was approximately three months after her death. That fact, plus the fact that the taxes were
not filed or paid until, at the earliest, XXXXX, leads the Commission to find
that ample time existed to file and pay the necessary taxes in question, but
that such was not accomplished.
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 second
and third - quarter XXXXX sales tax, nor with the XXXXX and XXXXX, withholding
tax. It is so ordered.
DATED
this 15 day of August, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes*
Commissioner Commissioner