BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX, ) AND FINAL DECISION
: Appeal No. 91-1418
: 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, a general partner of XXXXX. Present and representing the Collection Division was XXXXX.
The Tax Commission denied Petitioner's request for a waiver of penalties and interest on XXXXX. Petitioner then submitted a Petition for Reconsideration on XXXXX. This Petition was denied on XXXXX.
On XXXXX, XXXXX appeared personally at the Tax Commission concerned about five other quarters involving delinquent sales and use taxes. At the original formal hearing in this matter, XXXXX stated he wanted to discuss one specific quarter only even though his request actually spanned six quarters. XXXXX did not understand that he needed to address all six quarters in the first formal hearing.
On XXXXX, Administrative Law Judge XXXXX re-opened the hearing to enable XXXXX to be heard on the other five quarters.
Based upon the evidence and testimony presented at the XXXXX and XXXXX hearings, 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 second quarter of XXXXX through the first quarter of XXXXX, the third quarter of XXXXX and the first quarter of XXXXX. In these quarters, Petitioner either failed to file or to pay sales and use tax or both. Penalties and interest were assessed on each of these quarters.
3. The XXXXX was established in XXXXX by XXXXX, a XXXXX who arrived here from XXXXX in XXXXX.
4. XXXXX does not XXXXX very good XXXXX.
5. XXXXX hired an accountant to do his taxes. This accountant did not speak XXXXX.
6. According to XXXXX, currently a business partner with XXXXX, XXXXX would sign the returns that his accountant brought to him, but in so doing, he didn't understand his responsibilities to the state as a business entity.
7. In early XXXXX, XXXXX brought a delinquent tax notice to XXXXX to see if XXXXX could help him understand what the Tax Commission wanted and why. At the time, XXXXX was XXXXX cook.
8. XXXXX spoke and understood English better than XXXXX.
9. XXXXX then tried to rectify Petitioner's tax situation by calling the Tax Commission for help. He became a general partner with XXXXX shortly thereafter.
10. With XXXXX help, Petitioner filed and paid its sales and use taxes on time in the second quarter of XXXXX.
11. In XXXXX, XXXXX of the Tax Commission was assigned to Petitioner's account and soon after started Petitioner on a payment schedule.
12. Other than the first quarter of XXXXX when Petitioner's sales and use tax check bounced, Petitioner has been timely filing and paying sales and use tax.
13. Regarding the first quarter of XXXXX, Petitioner filed and paid its sales and use tax on XXXXX with check number XXXXX.
14. Check XXXXX was returned for insufficient funds on XXXXX.
15. On XXXXX, Petitioner filed and paid its second quarter sales and use tax with check number XXXXX. This check did not bounce.
16. On XXXXX, Petitioner paid its first quarter XXXXX sales and use tax with another check. This second check did not bounce.
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 been shown which would justify a reduction of the penalties assessed for the period of XXXXX through XXXXX to $$$$$. The remaining penalties assessed on the third quarter XXXXX and first quarter XXXXX are not waived. Interest is not waived. It is so ordered.
DATED this 5th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes