BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX, ) AND FINAL DECISION
:
) Appeal No.
92-1237
: 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, former president and owner of 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 and use tax.
2. The periods in question are the last two
quarters of XXXXX and the second quarter of XXXXX.
3. Petitioner paid sales and use tax late in
each of the quarters in question. Ten
percent late penalties assessed on each quarter.
4. Another ten percent late penalty was
assessed for late filing in the third quarter of XXXXX. The filing was one day late.
5. XXXXX purchased the XXXXX franchise in
question in XXXXX. This was XXXXX's
first business venture.
6. Prior to the purchase, XXXXX researched
other XXXXX franchises in determining whether or not to go into business.
7. Within six months of purchasing the
franchise, the mother company, XXXXX, went into bankruptcy.
8. Petitioner regrouped with other XXXXX
franchises in an effort to survive;
however, the cost of parts alone severely affected their ability to continue
business.
9. XXXXX also learned that her employees were
repairing cars on company time and pocketing the money.
10. Further, despite training and incentive
programs, Petitioner's managers constantly mismanaged the sales tax.
11. XXXXX began borrowing money from her own
charge cards to cover business expenses, including the taxes.
12. Finally, XXXXX had to spend more and more
time at Petitioner's location as manager turnover created a great deal of
instability.
13. In the end, the high cost of parts, the
inability to find a trustworthy manager and the lack of advertising caused
XXXXX to sell the business at a substantial loss.
14. Petitioner submitted a waiver request of the
penalties and interest. On XXXXX, the
Commission denied the request. This
decision was subsequently reconsidered and Petitioner was granted a 10%
reduction of the total tax liability ($$$$$).
15. At this time, Petitioner requests a waiver
of the remaining penalty and interest amounts.
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
Former
owner XXXXX describes a business gone sour.
Unfortunately for XXXXX, the outcome exacted a personal financial toll.
In
this case, Petitioner must remember that the sales and use taxes Petitioner
collected on behalf of the State never belonged to Petitioner in the first
place. These taxes were not a source of
funding to the business when cash-flow decreased.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a further reduction of the late payment penalties
assessed on the sales and use tax owing on the quarters in question. Interest is not waived. It is so ordered.
DATED
this 13 day of October, 1992.
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