BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: :
XXXXX )
:
FINDINGS OF
FACT, )
CONCLUSIONS OF
LAW, )
AND FINAL
DECISION )
:
: Appeal
Nos. 92-1835
: &
92-1836
: Account
Nos. XXXXX
: 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.
Present
and representing the Petitioner was XXXXX, the 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. Petitioner is requesting a waiver of the
penalty and interest assessments associated with the sales and use tax for the
following quarters: fourth quarter XXXXX; first quarter XXXXX; first, second
and third quarters XXXXX; and second quarter XXXXX.
3. Petitioner is requesting a waiver of the
penalty and interest assessment associated with the withholding tax for the
following quarters: fourth quarter XXXXX; all quarters XXXXX; all quarters
XXXXX; first, second and third quarters XXXXX; first, second and third quarters
XXXXX; and first quarter XXXXX.
4. Petitioner was additionally penalized for
failing to file W-2 forms at year's end for XXXXX, XXXXX, and XXXXX.
5. XXXXX, presently the sole owner of XXXXX,
started the business in question with her husband in XXXXX. She, her husband and a stepdaughter were the
directors of the company.
6. XXXXX handled the labor and design part of
the business while her husband, the company vice-president, took care of the
bookkeeping and other aspects.
7. XXXXX, a shareholder in the business, would
sign tax forms that her husband prepared.
She believed that he was sending the forms with payment to the proper
taxing agency.
8. In XXXXX and XXXXX, her husband told her
that finances were tight and that it would be necessary to spend funds
differently.
9. XXXXX was not aware of any inability to meet
tax obligations during this time.
10. In XXXXX, XXXXX took over the business as
she divorced her husband and he left the company.
11. Then, XXXXX learned from phone calls and
late notices from the Tax Commission that Petitioner had outstanding tax liabilities
with the I.R.S., XXXXX County, and the state.
12. Petitioner recently paid just under $$$$$ in
delinquent property taxes.
13. XXXXX is requesting a waiver of the
penalties and interest amounts as she feels that she should not be held
accountable for her ex-husband's misdeeds.
14. Petitioner had not timely filed and paid any
of the quarters in question.
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
Officers
and directors of a corporation are responsible for how the corporation is
run. In this case, XXXXX should have apprised
herself of the company's financial status.
Leaving the task to another officer does not relieve her of
liability. Based upon the foregoing,
the Tax Commission finds that sufficient cause has not been shown which would
justify a waiver of the penalties and interest associated with the taxes in
question for the periods referred to above.
It is so ordered.
DATED
this 12 day of March, 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