93-1240 - Sales, Use, and Transient Room

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX / XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1240

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on June 24, 1992. XXXXX, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was 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 are sales and use tax and transient room tax.

2. The periods in question are all quarters from January XXXXX through January XXXXX.

3. Petitioners jointly own a condominium in XXXXX which is routinely rented to others.

4. Joint owner XXXXX handled the leasing of the unit prior to January XXXXX. All taxes were paid timely under XXXXX management.

5. In January XXXXX, joint owner XXXXX took over the rental responsibilities from XXXXX.

6. XXXXX's daughter handled the reservations, room keys, etc.

7. In XXXXX, XXXXX's accountant noticed that Petitioners had not been reporting or remitting sales and use tax and transient room tax since XXXXX. At his direction, the delinquent quarters were paid and the respective returns filed.

8. Petitioners cleared up the tax deficiencies before the Tax Commission discovered the problem.

9. Petitioners were assessed $$$$$ for each delinquent quarter, $$$$$ twice for failure to file the two types of taxes and $$$$$ twice for failure to pay the taxes on time.

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 been shown which would justify a reduction of the penalties involved for the quarters in question to $$$$$ in light of the fact that the sales and use tax returns and the transient room tax returns are reported and paid in the same manner. Interest is not waived. It is so ordered.

DATED this 13th day of October, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner