94-0036

Sales

Signed 8/11/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioners, :

: ORDER

v. :

:

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, : Appeal No. 94-0036

Respondent. : Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference on XXXXX. G. Blaine Davis, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, the XXXXX of Petitioner. Present and representing the Respondent was XXXXX 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 periods in question are XXXXX.

3. The Petitioner operates a XXXXX in XXXXX, XXXXX.

4. Petitioner employs XXXXXXXXXX.

5. In the XXXXX, Petitioner fired one of its employees for violations of company policy, and the XXXXX went to the XXXXX XXXXX, and reported many of the XXXXX. Those employees had presented to Petitioner XXXXX which they had obtained.

6. XXXXX came to Petitioner's business and XXXXX XXXXX XXXXX of Petitioner, including one or more whose XXXXX and XXXXX to be in this XXXXX was valid.

7. As a consequence of that sudden and unanticipated action, the Petitioner was nearly put out of business and lost XXXXX of business which had been booked, but which Petitioner was unable to complete because of XXXXX.

8. Petitioner had already purchased many of the materials for those jobs, and the result was that overnight Petitioner was nearly forced into bankruptcy.

9. The Internal Revenue Service waived all penalties on XXXXX for the above reasons.

10. The Petitioner has a good payment record prior to and since the tax periods in question in this matter.

11. As a result of the drastic impact on the business, the Petitioner did not file or pay the sales tax returns until XXXXX, so the filing of the returns and payment of the tax amounts were XXXXX late respectively.

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 not been shown which would justify a waiver of the penalty associated with the XXXXX sales tax returns.

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 11th day of August, 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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