92‑1835
Withholding
Signed 3/12/93
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
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