93-1628
Sales
Signed 5/24/94
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
COLLECTION
DIVISION OF THE )
UTAH
STATE TAX COMMISSION, : FINDINGS OF FACT,
) CONCLUSIONS OF LAW,
Petitioner, : AND FINAL
DECISION
)
v. :
)
XXXXX dba
XXXXX : Appeal No. 93-1628
XXXXX, )
Respondent. : Account No. XXXXX
_____________________________________
STATEMENT OF
CASE
This matter came before the Utah State
Tax Commission pursuant to a petition by the Collection Division of the Utah
State Tax Commission for the revocation of license number XXXXX for failure to
comply with the laws of the State of Utah.
A formal hearing on the matter was
held on XXXXX. XXXXX, Administrative
Law Judge, heard the matter for and on behalf of the Commission with XXXXX,
Commissioner, and XXXXX, Administrative Law Judge attending. Present and representing the Petitioner was
XXXXX, Assistant Utah Attorney General.
Present and representing the Respondent 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 is sales tax.
2.
The period in question spans all quarters from XXXXX through the end of
XXXXX.
3.
Petitioner is requesting that Respondent's sales and use tax license
XXXXX be revoked for failure to pay over collected sales taxes to the state.
4.
According to Tax Commission records and the testimony of XXXXX, the
collections compliance agent assigned to this account, Respondent owes $$$$$ in
taxes, $$$$$ in penalties and $$$$$ in interest as of the date of this hearing.
5.
These figures are derived from declared returns filed by Respondent.[1]
6.
Respondent has not paid the taxes due on all quarters spanning the
second quarter XXXXX through the third quarter XXXXX with the exception of the
third and fourth quarters XXXXX and the fourth quarter XXXXX.
7.
Ms. XXXXX testified that she has made numerous contacts with XXXXX,
Respondent's owner, in an effort to clear this account. In the meantime, Respondent continued to
incur new tax liabilities each new quarter.
8.
In XXXXX, Ms. XXXXX proposed in writing to pay $$$$$ per month beginning
XXXXX with the remaining balance due in a balloon payment in XXXXX.
9.
The Commission accepted this proposal.
10.
Respondent, however, only made one payment of $$$$$ in XXXXX and none
thereafter.
11.
Ms. XXXXX explained that she had very little funds ($$$$$) when she
first took over the business in XXXXX out of its bankrupt state.
12.
She admitted that she used the tax money Respondent collected for the
quarters in question to run the business.
13.
Ms. XXXXX stated that she became delinquent on Respondent's sales tax
filings and payments after her bookkeeper was in an accident in XXXXX. Finally in XXXXX, the Tax Commission asked
her for the past due returns which she later "reconstructed" after
"crashing her computer" and filed them all at once.
14.
Respondent did not submit any payments with the past due filings.
15.
At a point in time during the period in question, Ms. XXXXX suggested
that she refinance her home to pay the sales tax balance. The loan application, however, was not
approved. Since then she has
re-submitted a loan application elsewhere to again attempt to secure
re-financing.
16.
Ms. XXXXX confirmed that she does not have the money to pay the balance
due as stated above. She contends,
however, that it would not be in the best interests of the state to close her
business because then she would never have the ability to earn the money to pay
the past due taxes.
DECISION AND
ORDER
Without question, Respondent has
failed to remit sales tax to the state as required by Utah law. (Utah Code Ann.
'59-12-107.)
The continuing pattern of nonpayment and the showing of inability to
resolve this account while yet accruing more tax liabilities compels the
Commission to find that sufficient cause exists for the revocation of license
number XXXXX.
Therefore, it is the order of the Utah
State Tax Commission that license number XXXXX is hereby revoked for failure to
comply with the laws of the State of Utah.
DATED this 24th day of May, 1994.
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(3)(a).
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