91-1433 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

XXXXX :

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 91-1433

UTAH STATE TAX COMMISSION, :

Respondent. :

______________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing by telephone on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner by telephone were attorney XXXXX and 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 sales tax.

2. The period in question is third quarter of XXXXX.

3. Petitioner paid its third quarter XXXXX sales tax nearly XXXXX late. A 10% late penalty plus interest was assessed.

4. The Commission later waived the penalty.

5. In late XXXXX or early XXXXX, XXXXX gave her husband money to start a business that eventually was named XXXXX.

6. XXXXX later divorced her husband when she learned that he had misused the money she had given him.

7. In early XXXXX, XXXXX took the business from her husband and discovered many unpaid debts, upwards of $$$$$ worth.

8. She renamed the business XXXXX and incorporated in XXXXX.

9. XXXXX was able to financially secure her business in the fourth quarter of XXXXX and first quarter of XXXXX. She was just getting the business on its feet in the third quarter of XXXXX and could not pay the respective taxes at that time.

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 interest associated with the third quarter of XXXXX. The penalty remains waived; however, the interest is still in effect. It is so ordered.

DATED this 13th day of February, 1991.

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