92-1090 - Sales, Resort, and Transient Room

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

XXXXX, :

) Appeal No. 92-1090

: Account No. XXXXX

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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. Representing Petitioner by telephone was XXXXX XXXXX, Petitioner's certified public accountant.

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 use tax, resort tax and transient room tax.

2. The period in question is XXXXX through XXXXX.

3. Petitioner failed to timely file and pay the taxes referred to above for the period in question. As a result, Petitioner was assessed penalties and interest.

4. Petitioner had his own property management business in XXXXX during the period in question. He was the sole employee.

5. According to a letter from Petitioner's doctor, Petitioner has been very seriously ill for several years, causing him to seek out treatment across the country in attempt to rectify the problem and to ameliorate the pain.

6. XXXXX, Petitioner's accountant, testified that Petitioner has undergone many surgeries for a condition that is described as scar tissue continually developing around the heart.

7. Petitioner lives in constant pain and has availed himself of all manner of treatment and surgeries to find a viable solution.

8. At one point, a pump was placed inside Petitioner's spine to provide morphine injections on a constant basis to cope with the pain.

9. XXXXX prepared Petitioner's returns and held them until Petitioner was in town and well enough to sign them and the accompanying checks. Months would pass waiting for Petitioner to sign the documents.

10. XXXXX did not want to sign the returns or checks, making him liable as a fiduciary.

11. According to XXXXX, Petitioner was concerned solely for his health and pushed all else aside when the pain was intense.

12. On the date of the hearing, Petitioner was undergoing surgery at XXXXX.

13. Petitioner's health caused Petitioner to go out of business last year.

14. Petitioner is in his late 20's.

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 waiver of penalties assessed on the sales and use tax, resort tax and transient room tax for the period in question. It is so ordered.

DATED this 20th day of August, 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