94-2136

Sales Tax

Signed 4/11/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-2136

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Sales Tax

_____________________________________

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. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner were XXXXX and XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to sales tax for the XXXXX filing period. Petitioner had requested waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the hearing the representatives for Petitioner stated that Petitioner was one week late in filing and 19 paying the XXXXX sales tax because Petitioner had discovered in XXXXX that its bookkeeper of XXXXX years had been embezzling from Petitioner. Petitioner estimated that the bookkeeper had taken more than $$$$$ over a one year period. Petitioner provided a police report and a report from Petitioner's accountant documenting the embezzlement. Petitioner's representatives stated that providing documentation necessary for the prosecution of the theft was time consuming. Further, Petitioner's representative, XXXXX, stated that all the bookkeeping responsibilities fell to him and he had done very little with Petitioner's accounting. He did not know what taxes were due or when they were due. It took XXXXX several months to be able to learn the bookkeeper's responsibilities so that taxes could be filed timely. Petitioner's representatives stated that penalties and interest had also been assessed for the XXXXX filing period for which they had requested a waiver from the Collection Division Waiver Unit.

Respondent stated that the Collection Division Waiver Unit had not yet made a determination of Petitioner's waiver request for XXXXX.

At the hearing Respondent stated that the payment and filing for the XXXXX filing period was due several months after the embezzlement so Respondent did not think there was sufficient reasonable cause to waive the penalties. However, Petitioner recommended removing the "CM" penalty which would reduce the penalties by half to $$$$$.

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 reduce the penalties assessed from $$$$$ to $$$$$ relating to sales tax for the XXXXX period. Sufficient cause has not been shown to waive the interest.

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 11 day of April, 1995.

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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