92-1598 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

__________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1598

: 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. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was 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 tax.

2. The periods in question are the second and fourth quarters of XXXXX, the first, second, and third quarters of XXXXX, and the first and second quarters of XXXXX.

3. In April of XXXXX, the Petitioner and her husband opened a restaurant and lounge located in XXXXX, Utah.

4. The Petitioner hired a chef who was responsible for running the entire kitchen operation. That individual stayed on for approximately one month and then left. A second chef was hired and that individual's responsibilities included management of the kitchen operation and to inform Mrs. XXXXX as to all bills that needed to be paid.

5. In July of XXXXX the Petitioner's husband became gravely ill, and on XXXXX the Petitioner's husband died.

6. During and after the husband's illness, the Petitioner was running the business however, because of the illness, much of the responsibility was left to the chef.

7. In October XXXXX the Petitioner discovered that the chef, whom she had been relying upon for operation of the business, had accumulated over $$$$$ in unpaid bills. The Petitioner immediately fired that individual and attempted to run the business and reconcile all the accounts.

8. Rather than shut down the business, the Petitioner attempted to keep the operation running. In doing XXXXX, the Petitioner was unable to pay her sales tax liabilities as they accrued. She did, however, file the returns as they became due.

9. In September of XXXXX, after having been contacted by the Tax Commission, the Petitioner entered into a repayment agreement to pay off the accrued sales tax liabilities. By the terms of the agreement, the Petitioner was obligated to pay $$$$$ every two weeks.

10. The Petitioner paid off all sales tax liabilities including penalty and interest for each of the quarters involved in July of XXXXX. During the quarters in question, the Petitioner filed her sales tax returns timely, however, either did not pay or paid only a partial portion of the sales tax liabilities. As a result penalties in the amount of $$$$$, $$$$$, $$$$$, $$$$$, $$$$$, $$$$$, and $$$$$ were imposed for each of the respective quarters.

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

In the present case, the Commission finds sufficient cause exists to reduce the penalties imposed to a single penalty of $$$$$. IT IS SO ORDERED.

DATED this 12th day of November, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

J B. Pacheco S. Blaine Willes

Commissioner Commissioner