93-0629

Sales

Signed 9/10/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0629

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX, owners.

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 periods in question are the fourth quarter XXXXX and the first quarter XXXXX. Petitioner filed and paid the sales and use taxes in question late in XXXXX. The Tax Commission assessed Petitioner two $$$$$ penalties, one for late filing and the other for late payment, on each quarter, plus interest.

3. For clarification purposes, XXXXX is listed under sales and use tax license number XXXXX. This entity, however, has been considered by its owners, the XXXXX, as an inactive business since XXXXX. The XXXXX, in turn, started an independent distributorship for XXXXX in XXXXX under this same sales and use tax license number. The sales and use taxes reported since XXXXX under this number are sales derived from XXXXX.

4. XXXXX deals in vitamins and wholesome foods whereas XXXXX was a tropical fish business.

5. Most of the sales Petitioner had in the quarters in question were purchases by the owners themselves. As both owners have fragile medical conditions, they use the food and vitamins that XXXXX sells.

6. Mr. XXXXX had medical problems requiring surgery during the year encompassing the two quarters in question. He was unable to work for extended lengths of time.

7. At one point he was misdiagnosed and consequently given the wrong medication. Later, he was correctly treated for a bleeding ulcer and internal shingles. He has since returned to work.

8. Ms. XXXXX has been dealing with environmental allergies which cause her intermittent nausea, depression and disorientation.

9. The owners explained that at some point during their struggles with their medical conditions and change in residences they lost their sales receipt book, causing a bookkeeping problem and an inability to file their quarterly returns.

10. The XXXXX explained that they are financially strapped at this time with medical bills and from periods of unemployment. They have renegotiated their home mortgage and changed the way they purchase products from XXXXX to help solve their financial situation.

11. Petitioner has a history of late sales and use tax filings and payments.

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 not been shown which would justify a reduction of the penalties assessed on the sales and use tax due on the quarters in question. Interest and legal fees are not waived. It is so ordered.

DATED this 10th day of September, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63-46b-13(1), 63-46b-14(2)(a).

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