BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
:
: Appeal No.
91-1325
_____________________________
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 and representing the Petitioner was
XXXXX, partner of 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 the prepayment of
sales and use tax.
2. The period in question is the second quarter
of XXXXX, i.e. XXXXX.
3. Petitioner failed to file and prepay its
sales and use tax for the year XXXXX by XXXXX.
Instead, Petitioner filed and paid $$$$$ in taxes at the end of the
quarter on XXXXX. A penalty in the
amount of $$$$$ and interest in the amount of $$$$$ were assessed.
4. XXXXX bought XXXXX in XXXXX. At the time he applied for the tax
registration number, he was not informed of the prepayment requirement.
5. The previous office manager under the former
owner did not continue employment with Petitioner after the new ownership. The new office manager was also unaware of
the prepayment rule.
6. Petitioner proceeded to pay taxes on a
quarterly basis as usual without knowledge of the prepayment obligation.
7. XXXXX previously owned XXXXX for XXXXX. This
business was much smaller than XXXXX and never made enough money for XXXXX to
encounter the prepayment requirement.
8. Petitioner learned of the prepayment
requirement when the Tax Commission notified him on XXXXX, regarding the missed
prepayment.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
XXXXX
purchased a continuing business that required a prepayment of sales and use
tax. As the new owner, XXXXX should
have been aware of the ongoing business's tax obligations.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the second
quarter of XXXXX in the amount of $$$$$.
The interest is not waived. It
is so ordered.
DATED
this 29th 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