BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
:
: Appeal No.
92-1273
: 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, Petitioner's
secretary.
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 all quarters from the fourth quarter of XXXXX
through the third quarter of XXXXX.
3.
Petitioner filed all of the sales and use tax returns in question in XXXXX,
months and, sometimes, years after the due dates.
4.
Likewise, the payments due on the quarters in question were all paid late.
5.
Petitioner was assessed a ten percent penalty for each late filing and an
additional ten percent penalty for each late payment.
6.
Petitioner's owner, XXXXX, began the business in XXXXX and was the sole
employee during the period in question.
7.
As such, XXXXX spent all of his efforts making his business a success.
8.
In late XXXXX, XXXXX hired XXXXX to handle the office matters.
9.
Soon after XXXXX started, she saw the letters that the Tax Commission had sent
concerning unpaid taxes.
10.
XXXXX also saw that XXXXX had been allowing mail to pile up in his office, some
of it never opened.
11.
XXXXX contacted the Tax Commission to remedy the situation. As a result of her
efforts, Petitioner filed the outstanding returns and paid all of the back
taxes within a month or two.
12.
According to XXXXX, the penalties and interest assessed against Petitioner
weigh heavily against Petitioner's chances for future success.
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
Of
particular interest in this case is the fact that the owner chose not to deal
with his tax obligations until a point in time when he realized the effect
therefrom could be devastating. Choosing not to act may not have been
intentional, but nevertheless, the inaction has proven costly.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalties or interest associated with
the sales and use taxes due on the quarters in question. It is so ordered.
DATED
this 2nd day of October, 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