BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-1287
_____________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Present by telephone and representing the
Petitioner was XXXXX, Owner.
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 and use tax.
2. The periods in question are the third and
fourth quarters of XXXXX, all quarters of XXXXX, and all quarters of XXXXX.
3. On XXXXX, Petitioner filed his third quarter
XXXXX sales tax return and paid $$$$$ in taxes. He did not pay the $$$$$ penalty and $$$$$ in interest.
4. On XXXXX, Petitioner filed his fourth
quarter XXXXX sales tax return. On
XXXXX, he paid his taxes in the amount of $$$$$. He did not pay the $$$$$ penalty and $$$$$ in interest.
5. On XXXXX, Petitioner filed his first quarter
XXXXX sales tax return. On XXXXX, he
paid his taxes in the amount of $$$$$.
He did not pay the $$$$$ penalty and $$$$$ in interest.
6. On XXXXX, Petitioner filed his second
quarter XXXXX sales tax return. On
XXXXX, he paid his taxes in the amount of $$$$$. He did not pay the $$$$$ penalty and $$$$$ in interest.
7. On XXXXX, Petitioner filed his third quarter
XXXXX sales tax return. On XXXXX, he
paid his taxes in the amount of $$$$$.
He did not pay the $$$$$ penalty and $$$$$ in interest.
8. On XXXXX, Petitioner filed his fourth
quarter XXXXX sales tax return. He paid
his taxes in the amount of XXXXX on XXXXX.
He did not pay the $$$$$ penalty and $$$$$ in interest.
9. On XXXXX, Petitioner filed his first quarter
XXXXX sales tax return. He paid his
taxes in the amount of $$$$$ on XXXXX.
He did not pay the $$$$$ penalty and $$$$$ in interest.
10. On XXXXX, Petitioner filed his second
quarter XXXXX sales tax return. He paid
his taxes in the amount of $$$$$ on XXXXX.
He did not pay the $$$$$ penalty and $$$$$ in interest.
11. On XXXXX, Petitioner filed his third quarter
XXXXX sales tax return. He paid his
taxes in the amount of $$$$$ on XXXXX.
He did not pay the $$$$$ penalty and $$$$$ in interest.
12. On XXXXX, Petitioner filed his fourth
quarter XXXXX sales tax return. He paid
his taxes in the amount of $$$$$ on XXXXX. He did not pay the $$$$$ penalty and
$$$$$ in interest.
13. Petitioner bought XXXXX in XXXXX. He was a first time business owner.
14. The cost of the business was higher than
anticipated. Petitioner had to
"use the sales tax to pay the bills" or "close the doors".
15. Petitioner borrowed as much money as
possible, but still could not make enough money to pay the sales tax over to
the state. He had to choose between
going out of business or paying his taxes.
16. Petitioner was late filing his returns
because he did not understand that he was obligated to file returns even though
he was not making payments.
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
Petitioner
mistakenly concluded that the sales tax he collected from consumers was an
available resource to pay business creditors.
Collected sales tax belongs to the state. Petitioner never had a right to spend this money as if it was his
own. He, in fact, was holding this
money in trust on behalf of the state with the duty to forward it to the Tax
Commission.
Petitioner's
request is denied.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the third and fourth quarters of XXXXX, all quarters of XXXXX and all quarters
of XXXXX. It is so ordered.
DATED
this 22nd day of January, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner