BEFORE THE UTAH STATE TAX COMMISSION
COLLECTION DIVISION OF THE )
UTAH STATE TAX COMMISSION, : FINDINGS OF FACT,
) CONCLUSIONS OF LAW,
Petitioner, : AND FINAL DECISION
XXXXX dba XXXXX : Appeal No. 93-1628
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 $$$$$ in taxes, $$$$$ in penalties and $$$$$ in interest as of the date of this hearing.
5. These figures are derived from declared returns filed by Respondent.
6. Respondent has not paid the taxes due on all quarters spanning the second quarter XXXXX through the third quarter XXXXX with the exception of the third and fourth quarters XXXXX and the fourth quarter XXXXX.
7. Ms. XXXXX testified that she has made numerous contacts with XXXXX, Respondent's owner, in an effort to clear this account. In the meantime, Respondent continued to incur new tax liabilities each new quarter.
8. In XXXXX, Ms. XXXXX proposed in writing to pay $$$$$ per month beginning XXXXX with the remaining balance due in a balloon payment in XXXXX.
9. The Commission accepted this proposal.
10. Respondent, however, only made one payment of $$$$$ in XXXXX and none thereafter.
11. Ms. XXXXX explained that she had very little funds ($$$$$) 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
Joe B. Pacheco Alice Shearer
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).