91-1638 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

Petitioner, : AND FINAL DECISION

XXXXX ) Appeal No. 91-1638

Respondent. : Account No. XXXXX

__________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to a petition by the Collection Division of the Utah State Tax Commission for the revocation of license number XXXXX, for failure to comply with the laws of the State of Utah.

Hearing on the matter was held on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner were XXXXX and XXXXX. Present and representing the Respondent was XXXXX, owner.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The taxes in question are sales and withholding taxes.

2. The periods in question are the first quarter of XXXXX (sales tax only), the first quarter of XXXXX (sales and withholding taxes) and the second quarter of XXXXX (sales and withholding taxes).

3. Respondent has been operating his business with a sales tax license since XXXXX.

4. In XXXXX, Respondent filed for chapter 13 bankruptcy. Prior to the bankruptcy filing, Respondent had other periods of late payments.

5. Since the bankruptcy was confirmed in XXXXX, Respondent has failed to pay sales and withholding taxes for the periods in question. Respondent has also failed to pay sales and withholding taxes for the third quarter of XXXXX.

6. Respondent owes his delinquency status to a combination of factors. First, in either XXXXX or XXXXX, the state of Utah closed down the street where the business is located to widen it from two to four lanes. Respondent lost business during this time, and later, the angled parking that previously was near his building.

7. Secondly, Respondent claims the Gulf War and current recession have also hurt business because people do not XXXXX out as much.

8. Respondent did collect sales and withholding taxes during the periods in question. He did not submit the money to the State because he spent it on the business to keep it afloat.

9. Respondent stated that he is selling his business. It has been on the market for three weeks.

10. Respondent admitted that a condition of the bankruptcy agreement included his promise not to incur further debts.

11. Respondent also stated that he takes home $$$$$ a month from the business. He then pays $$$$$ as required by the bankruptcy. He supports his wife and seven children with the remainder.

12. Not including the delinquent third quarter of XXXXX, Respondent owes nearly $$$$$ in taxes, penalty and interest.

CONCLUSIONS OF LAW

The Tax Commission shall revoke the license of any person violating any provisions of the Sales Tax Act. (Utah Code Ann. §59-11-106(1).)

DECISION AND ORDER

The Tax Commission finds sufficient cause exists for the revocation of license number XXXXX. Therefore, it is the order of the Utah State Tax Commission that license number XXXXX is hereby revoked for failure to comply with the laws of the State of Utah and the petition is granted.

DATED this 14 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