BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-1376
: Account
No. XXXXX
________________________________
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, Vice-President and co-owner.
Present and representing the Auditing Division was XXXXX, Assistant Utah
Attorney General.
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 pre-payment of
sales and use tax.
2. The period in question is the year XXXXX.
3. Petitioner timely filed its prepayment of
sales and use tax return on XXXXX.
4. Petitioner under reported and underpaid this
prepayment amount by approximately $$$$$.
5. This deficiency was paid in full on XXXXX.
6. This was not the first time Petitioner was
obligated to make a prepayment of sales and use tax.
7. During the time in question, XXXXX managed
Petitioner's operations.
8. XXXXX filed for bankruptcy in XXXXX in Petitioner's
XXXXX store d.b.a. "XXXXX".
After this occurred, XXXXX was removed from his management position.
9. XXXXX became involved with Petitioner in
XXXXX.
10. He requests a waiver of the approximately
$$$$$ in penalties in that Petitioner is now under new management and does not
anticipate the same problems experienced under the previous management.
11. Petitioner also states that it would not be
fair to assess penalties against the current management as it was not
responsible for the practices of its predecessors.
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 penalties and interest associated
with the prepayment of sales and use taxes due XXXXX in light of the fact that
Petitioner has been obligated to make prepayments in the past and knew of the
requirements. This penalty is levied
against the business entity and not any one employee.
Interest
is not waived. It is so ordered.
DATED
this 2nd day of December, 1992.
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