93-1061

Pers. Penalty

Signed 7/26/94

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : ORDER

v. : Appeal No. 93-1061

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

Respondent. : Tax Type: Pers. Penalty

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.

Petitioner has requested a waiver of the personal penalty assessed for the period from the first quarter of XXXXX through the fourth quarter of XXXXX.

Petitioner accepts responsibility from the first quarter of XXXXX through fourth quarter of XXXXX. However, Petitioner asserts that he resigned as Secretary of the corporation in XXXXX to be effective XXXXX. However, Petitioner continued to work for the company through Fall of XXXXX as general sales manager. As general sales manager he was an employee.

Although Petitioner was notified of outstanding tax in XXXXX, and received a Notice of Warrant in XXXXX, he did not present the letter indicating his resignation until XXXXX, even though the letter was dated XXXXX. The letter which he presented in XXXXX is not signed. Petitioner indicated that the letter was computer generated rather than a copy of the actual signed letter.

Despite the change in position which the Petitioner testified to at the hearing, the records and the Petitioners testimony indicates that he remained responsible for the signing and filing of the returns for XXXXX and XXXXX. He remained in a position of authority in which he filed returns, signed checks, and made decisions. The record shows that as late as XXXXX Petitioner continued to sign returns as Secretary/Treasurer. Petitioner's response to this is that it was simply a force of habit.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the personal penalty assessment.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 26 day of July, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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