BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX, )
Petitioner, :
XXXXX, )
Petitioners, : ORDER
v. )
:
AUDITING
DIVISION OF THE ) Appeal Nos. 92-1512
UTAH STATE TAX
COMMISSION, : and 92-1745
Respondent.
_____________________________________
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dated XXXXX be rescinded.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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner