98-0504

Sales

Signed 6/25/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

Petitioner, : DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 98-0504

UTAH STATE TAX COMMISSION, : Account No. #####

Respondent. : Tax Type: Sales

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. §59-1-502.5 An Initial Hearing was held on June 3, 1998. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was NAME. Present and representing Respondent respondent were Vickie Christoffersen and Laurie Allred.

Based upon the evidence in the file and presented at the hearing, the Commission makes its:

FINDINGS

Petitioner is appealing $$$$$ in penalties and $$$$$ in interest assessed for the late filing and late payment of sales tax for the third quarter of 1997. During the quarter at issue Petitioner owned and operated COMPANY A and it was this business that incurred the penalties and interest. Subsequent to the quarter at issue Petitioner sold COMPANY A but retained the sales tax number to use with COMPANY A, a new business which she intended to open.

Petitioner explained that the sales tax form and check for payment had been prepared timely and given to an employee to mail. According to Petitioner, this employee did not mail the return timely due to personal problems. Petitioner did not learn of the error until after she had sold the business.

Respondent's representative pointed out that the business owner is responsible for seeing that taxes are paid in a timely manner. She also explained that this was not a first time error as it was the fourth delinquency in the past three years and that notices had been sent to the business concerning these delinquencies.

APPLICABLE 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(10).)

DECISION AND ORDER

Petitioner was the owner of the business during the quarter at issue in this appeal. The owner of a business is responsible for seeing that taxes are paid in a timely manner. This is not a case of first time error and the fact that Petitioner sold the business subsequent to the period at issue does not justify waiver of the penalties.

The Tax Commission finds sufficient cause has not been shown to waive the penalties or interest associated with the sales tax for the third quarter of 1997. It is so ordered.

This Decision does not limit a party's right to a Formal Hearing. Any party to this case may file 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, UT 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 25 day of June, 1998.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

Jane Phan

Administrative Law Judge

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 25 day of June, 1998.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner