93-2160

Sales

Signed 5/13/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, :

:

Petitioner, : ORDER

:

v. : Appeal No. 93-2160

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. :

_____________________________________

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. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, an attorney. Present and representing the Respondent was XXXXX, Assistant Utah Attorney General.

According to Tax Commission records, Petitioner failed to timely pay sales and use tax ($$$$$) and waste tire tax ($$$$$) for the month of XXXXX. As a result, the Commission assessed Petitioner ten percent penalties on each of these taxes.

Petitioner paid the tax amounts in full on XXXXX, five days after the due date.

Also according to Tax Commission records, Petitioner failed to timely file and pay sales and use tax ($$$$$) and waste tire tax ($$$$$) for the month of XXXXX. As a result, the Commission assessed Petitioner double penalties on each of these taxes.

Petitioner filed and paid the XXXXX returns on XXXXX, one week after the due date.

At the settlement conference in this case, Petitioner's attorney explained that in the months in question, XXXXX had a severe cashflow problem. In fact, XXXXX was in bankruptcy and subject to foreclosure by XXXXX Bank on XXXXX.

Prior to the foreclosure date, XXXXX went to XXXXX, a California entity, asking for help. Forty-eight hours before XXXXX, XXXXX paid XXXXX Bank to ward off execution of the foreclosure. On XXXXX, XXXXX purchased XXXXX.

Many changes in staff and management have resulted, including obtaining a new sales and use tax license. Since XXXXX has become owner, Petitioner has been timely in both filing and payment of sales and use and waste tire taxes. XXXXX paid the outstanding tax liability which is the subject of this appeal. At the time of assuming ownership, however, XXXXX had no idea that penalties had been assessed for the months of XXXXX and XXXXX.

Petitioner dba XXXXX is requesting a waiver of the penalties in that it was not responsible for the late filings and late payments. XXXXX believes that it acted as swiftly as possible to pay the taxes and file the returns within a reasonable time of the due dates.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties assessed for the months of XXXXX and XXXXX on sales and use tax and waste tire tax. Interest is calculated to the dates full payments of taxes were made.

This Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request for a Formal Hearing within ten (10) days of the date of this decision. 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

160 East 300 South

Salt Lake City, Utah 84134

It is so ordered.

DATED this 13th 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

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