BEFORE THE UTAH STATE TAX COMMISSION
Petitioners, : ORDER
AUDITING DIVISION OF THE ) Appeal Nos. 92-1512
UTAH STATE TAX COMMISSION, : and 92-1745
STATEMENT OF CASE
On XXXXX, after receiving a statutory notice dated XXXXX, the Petitioner, XXXXX, filed its appeal.
After a meeting with the Respondent, a second statutory notice was issued by the Auditing Division on XXXXX. As a result of the second notice, XXXXX decided to pay the deficiency prior to the expiration of the thirty day grace period so that interest would not accrue on the outstanding liability. At no time did XXXXX, by doing so, intend to surrender any rights it or its subcontractor had to contest the appropriateness of the assessment. The check was mailed on XXXXX. On that same date, the controller for XXXXX signed a "Memorandum of Understanding" which, inter alia, withdrew the petition for redetermination.
On XXXXX, the Auditing Division received a petition for redetermination filed by XXXXX in the XXXXX matter. XXXXX was one of the subcontractors XXXXX engaged in the construction of the XXXXX. Because of the contractual relationship between XXXXX and XXXXX, XXXXX could be liable to XXXXX for payment of the sales tax deficiency.
It was the intention at all times of XXXXX and XXXXX to allow XXXXX the right to contest the legitimacy of the audit deficiency. Only because of the misunderstanding of the controller for XXXXX with respect to the effect of the Memorandum of Understanding dated XXXXX was XXXXX ability to do so impaired or otherwise compromised.
DECISION AND ORDER
Under the facts of the present case, the Tax Commission hereby orders that the Memorandum of Understanding executed by XXXXX and XXXXX, controller for XXXXX, dated XXXXX be rescinded. The Tax Commission further orders that appeal number 92-1512 be reinstated; that appeal number 92-1745 be consolidated with appeal number 92-1512; and that both cases proceed under the singular case number of 92-1512. The Tax Commission further orders that XXXXX be allowed to intervene in the matter as a party in interest. It is so ordered.
DATED this 12th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes