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
__________________________________
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