BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
:
: Appeal
Nos. 91-0937 &
: 91-0938
_______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX, C.P.A.
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 tax and
withholding tax.
2. The periods in question are: a) sales tax,
second and third quarters of XXXXX; and b) withholding tax, second, third and
fourth quarters of XXXXX.
3. Petitioner began doing business during the
second quarter XXXXX. He employed a local C.P.A. to prepare and file his
various tax reports. The Petitioner
provided his C.P.A. with his business records and delivered all tax
correspondence to her.
4. During early XXXXX, the Petitioner
discovered his C.P.A. had failed to filed sales and withholding tax returns
during the previous year. He then engaged
XXXXX to prepare and file those returns.
XXXXX obtained Petitioner's records from the other C.P.A., then filed
the necessary reports during XXXXX, accompanied with payment of sale tax of
$$$$$ and withholding tax of $$$$$.
5. Because Petitioner's returns for the periods
in question were not filed or paid within the time permitted by law, penalties
totalling $$$$$ were imposed against Petitioner's sales tax liability and
penalties of $$$$$ were imposed against his withholding tax liability.
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
The
evidence on this matter establishes that the Petitioner acted in a prudent
manner in entrusting his tax affairs to a C.P.A., presuming that such a person
had requisite expertise to see that applicable tax filing requirements were
met. When the Petitioner discovered
that his representative had failed to file the necessary tax returns, he
obtained the services of a second C.P.A. Petitioner's sales and withholding tax
returns have now been filed and the amount of tax due on those returns has been
paid.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with Petitioner's
sales and withholding tax liability for the periods in question. Interest is
not waived, but will be recomputed in accordance with this decision. It is so ordered.
DATED
this 10th day of December, 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