BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1872
: Account
No. 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, a partner in XXXXX XXXXX.
Based
upon the evidence and testimony presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales and use tax.
2. The period in question is the fourth quarter
XXXXX through third quarter XXXXX.
3. Mr. and Mrs. XXXXX started an XXXXX business
in XXXXX.
4. Mrs. XXXXX, the XXXXX, maintained the
business while her husband was not involved.
5. In XXXXX, Mr. XXXXX was injured at work and
has not been able to work since.
6. In XXXXX, Petitioner went out of business,
even after Mrs. XXXXX had taken on a second job to keep the XXXXX store going.
7. In XXXXX, Mr. XXXXX received a phone call
from the Tax Commission regarding past due sales and use tax returns and
payments due on the business.
8. This was the first notice Mr. XXXXX received
of a tax deficiency with the state.
9. Mr. XXXXX has tried to discuss the matter
with his wife without success.
10. He has concluded that Mrs. XXXXX used the
tax money to keep the business going.
11. Mr. XXXXX immediately worked out an
arrangement to pay the sales and use tax owed to the state.
12. He is requesting a waiver of the penalties
and interest in that he and his wife are on a very limited income. Mr. XXXXX receives long-term disability
income for his injury.
13. Petitioner still owes over $$$$$ to one
supplier.
14. Mr. XXXXX feels that he and his wife had
worked steadfastly to pay the tax debts, foregoing other needs.
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
Sales
and use taxes are monies due to the state.
Regardless
of the financial pressures of business, the sales and use taxes are not to
become a source of funding for the business.
In
this case, it is obvious that the XXXXX did not communicate as two business
partners should.
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 assessment
associated with the fourth quarter XXXXX through third quarter XXXXX. It is so ordered.
DATED
this 12th day of March, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner