91-1642 - 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

:

v. :

:

: Appeal No. 91-1642

:

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 pursuant to an order dated XXXXX granting reconsideration of this matter. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, an attorney. Present and representing the Respondent 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 sales tax.

2. The period in question is XXXXX through XXXXX.

3. Respondent was audited for the period of XXXXX through XXXXX. As a result, Respondent was assessed over $$$$$ in back sales tax, penalties and interest after credits were applied.

4. Respondent received the so-called statutory notice of agency action following the conclusion of the audit on XXXXX.

5. Approximately four months later, Respondent sent the Tax Commission a letter disputing the amount assessed per the audit, claiming his accountant and attorney had failed to act within the statutory 30-day response deadline.

6. In the meantime, Respondent failed to file his sales and use tax returns and to make payments on a timely and consistent basis over the succeeding quarters. Respondent was late six times in filing returns, sometimes months late. Two checks bounced.

7. With the XXXXX through XXXXX audit and all other outstanding balances on numerous quarters, Respondent owes over $$$$$ in back taxes, penalties and interest. This figure includes an $$$$$ assessment from a compliance audit that Respondent is currently disputing.

8. Respondent concedes that his record books were not in order as they should have been prior to XXXXX.

9. Respondent has paid sales and use tax payments directly to the Tax Commission on a weekly basis since he was ordered to do so by the Commission on XXXXX.

10. Respondent requests the Commission to 1) allow him to challenge the audit deficiency assessment of XXXXX through XXXXX; and 2) retain his sales tax license based upon his compliance with the court order to pay his current sales tax on a weekly basis.

CONCLUSIONS OF LAW

The Tax Commission shall revoke the license of any person violating any provisions of the Sales Tax Act. (Utah Code Ann. §59-12-106(1).)

DECISION AND ORDER

The Tax Commission will not allow Respondent to challenge the results of the XXXXX through XXXXX audit. Respondent received the statutory notice nearly three and a half years ago. The audit became final 30 days thereafter. The matter is closed and not open for review. Respondent may pursue his options against those persons who may have caused him damages.

Respondent's case history of late payments and filings, culminating in an exorbitant balance with no evidence of ability to meet tax obligations leaves the Tax Commission with one choice.

Based upon the foregoing, the Tax Commission hereby orders license number XXXXX revoked for failure to comply with the laws of the state of Utah. Respondent's compliance with the XXXXX order to make weekly payments of current sales and use tax enabled Respondent to retain his license while this appeal was being resolved. It is so ordered.

DATED this 26 day of May, 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