BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
XXXXX INC., :
) Appeal
Nos. 92-1801
: and 92-1802
) Account
Nos. XXXXX
: and XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented by
XXXXX, owner.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The taxes in question are sales and use tax
and withholding tax.
2. Pertaining to the sales and use tax, all
quarters of XXXXX and XXXXX are at issue.
Pertaining to the withholding tax, all quarters of XXXXX are at issue.
3. Petitioner paid all of the delinquent
quarters in question above in XXXXX.
4. Petitioner was assessed a ten percent late
filing and a ten percent late payment penalty on each of the quarters in
question plus interest.
5. Petitioner is requesting a waiver of these
penalty and interest amounts.
6. XXXXX, owner of XXXXX, testified that in
XXXXX he opened a second restaurant in the XXXXX Mall. Just prior to the opening, his mother was
diagnosed with terminal cancer.
7. XXXXX flew home to his mother to care for
her. At intervals, he would return to
his business for brief periods of time.
8. Shortly after his mother was diagnosed with
cancer, XXXXX' grandmother died. In
XXXXX, XXXXX lost his mother to cancer.
He had been with her for two weeks prior to her death. XXXXX handled the funeral arrangements.
9. XXXXX explained that the losses of his
mother and grandmother, both of whom he was very close to, caused him
substantial emotional setbacks.
10. During the time XXXXX had attended to his
mother, he let his business responsibilities slide. The second restaurant was not doing well in its location and
without XXXXX' direction the restaurant fell even further behind.
11. During the next year or so, XXXXX understood
that Petitioner's certified public accountant was handling the withholding tax
return filings and sales and use tax return filings. When XXXXX later learned that this was not the case, he realized
that there was miscommunication somewhere along the line.
12. XXXXX, in order to keep this second location
on its feet, had spent $$$$$ of his mother's inheritance and had mortgaged his
home. Despite XXXXX' efforts, the new
location was losing some $$$$$ per month.
XXXXX began working double shifts and doing all of the restaurant
shopping himself. He did not draw a
salary for two years.
13. When the Tax Commission contacted XXXXX and
told him that Petitioner was behind $$$$$ in taxes, XXXXX put the restaurant up
for sale. He took the proceeds from the
sale and paid off the outstanding tax and interest amounts.
14. Petitioner is requesting a waiver or
reduction of the penalty and interest assessments in that XXXXX had been unable
to get the restaurant off to a good start due to the deaths in the family. Further, XXXXX assumed that the taxes were
being paid throughout the short existence of the second restaurant, believing
that the taxes had been taken care of by the accountant.
15. At the time, XXXXX is struggling to meet his
financial obligations worsened by the events described.
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
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a reduction of the penalties associated with the
sales and use tax and withholding tax due on the years XXXXX and XXXXX to ten
percent. Interest is not waived. It is so ordered.
DATED
this 7th day of May, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner