92-1390 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1390

: Account No. XXXXX

________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing by telephone on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Representing Petitioner was XXXXX, owner.

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. Nine quarters are in question spread between XXXXX and XXXXX.

3. Throughout the period in question, Petitioner periodically filed and paid sales and use taxes late. On three of the earliest quarters, Petitioner filed timely, but paid late.

4. Petitioner was assessed $$$$$ for each late filing and another $$$$$ for each late payment, plus interest.

5. Petitioner first bought the store in early XXXXX as a multi-level investment opportunity.

6. The store, located on a dead end street, never was a success.

7. The owner, XXXXX, worked as a salesman on the side to help the business along.

8. The store began to cost more and more money to keep afloat.

9. Finally, XXXXX left the business. He borrowed money to pay the taxes.

10. At 65 years of age, XXXXX is unable to find work. His wife works extensive hours to ameliorate the situation.

11. The store was not the first business enterprise XXXXX has been involved with; he was knowledgeable of state sales and use tax obligations.

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 elected to use the sales and use tax it collected on behalf of the state to help keep the business going. Unfortunately for Petitioner, these funds were never available to it as a money source. Detrimental to Petitioner's case is the fact that the owner knew better.

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 associated with the nine 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