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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner