BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW, XXXXX, ) AND
FINAL DECISION
)
:
) Appeal No.
92-1330
: 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 were
certified public accountant XXXXX and 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 fourth
quarter of XXXXX and the first quarter of XXXXX.
3. Petitioner filed and paid late on both
quarters.
4. Petitioner owns a XXXXX.
5. In 1988, Petitioner opened a second XXXXX at
a new location in XXXXX. XXXXX, who
managed the first XXXXX, permitted a relative to manage this store.
6. New at managing a XXXXX, the second
location's manager overstocked inventory, causing a cash flow shortage.
7. Compounding the problem was the fact that
the new store was not as successful as Petitioner had anticipated.
8. Then in XXXXX, Petitioner lost its in-house
accountant who handled all of the financial obligations and tax filings.
9. She returned in May of XXXXX and helped
clear up any remaining tax
deficiencies.
10. Prior to these two periods in question,
Petitioner always filed and paid timely.
11. Petitioner contends that the penalties
assessed on each of the quarters are excessive, i.e., two 10% penalties for
late filing and two 10% penalties for late payment.
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
Petitioner's
tax history indicates that Petitioner was aware of the sales and use tax filing
and remittance requirements when it missed the quarter filing deadlines. The omission occurred in the midst of
change, both in the accounting staff and in the arrival of a new manager to the
second location.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalties and interest assessed on
the quarters in question in that Petitioner's failure to monitor itself during
a stressful period caused it to miss deadlines. 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