BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
: FINDINGS
OF FACT,
XXXXX, ) CONCLUSIONS OF LAW,
: AND FINAL
DECISION
)
: Appeal No.
92-1886
)
: 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. XXXXX, president, represented Petitioner by
telephone.
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 quarters in question are the last three
quarters of XXXXX, the first and last quarter of XXXXX and the third quarter of
XXXXX.
3. Petitioner is requesting a waiver of the
penalty and interest assessments on the quarters in question on the grounds of
hardship.
4. XXXXX, president of XXXXX XXXXX, recalls when
this account first went to collections in XXXXX and a field collector was
assigned. Mr. XXXXX tried to make
scheduled payments on a regular basis.
5. During the collection period, different
collectors would be assigned to Petitioner and Mr. XXXXX would ask for an
accounting of the total payments to date.
He believes that his account was not properly credited at times.
6. Petitioner's account history shows that
credit adjustments were made to rectify past errors.
7. Petitioner's account also shows three
bounced checks over the period in question.
Mr. XXXXX contends that one check bounced because the collector
deposited it even though Mr. XXXXX requested him to hold it awhile longer.
8. Mr. XXXXX explained that Petitioner was late
in paying sales tax due to tight finances.
At one point, he purchased a new gas station only to find that the gas
tank was leaking, costing Petitioner $$$$$.
9. Also, Mr. XXXXX experienced major medical bills
when his wife had a high risk pregnancy in XXXXX, causing further financial
difficulty. The loss of a child
complicated matters.
10. At different times, Petitioner's creditors
pursued Petitioner in bankruptcy proceedings.
11. Mr. XXXXX claims that field collectors
misrepresented to him how his account would be credited and whether or not
penalties and interest would be waived.
He also understood that his account was current only to learn later that
more taxes were due.
12.
Mr. XXXXX contends that there is a possibility that his initial waiver
request of these quarters was not given a fair review because a former field
collector on Petitioner's account worked in the Tax Commission waiver
unit. Mr. XXXXX and this field
collector did not get along.
13. In summary, Petitioner is requesting at
least a reduction of some amount in its penalty and interest assessments.
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
This
is a case where Petitioner elected to use sales and use tax money to help it
through difficult financial times.
Clearly, sales and use tax is not to be diverted for this purpose.
Petitioner's
account had been corrected previously to assure payments were properly
credited.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver or reduction of the penalty and interest
assessments on the quarters in question.
It is so ordered.
DATED
this 10th day of June, 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