01-1260

Income Tax

Signed 5/6/02

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-1260

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Income Tax

OF THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 2000

)

Respondent. ) Judge: Davis

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP

For Respondent: Ms. Laurie Payne, from the Taxpayer Services Division

Ms. Jan Sanchez, from the Taxpayer Services Division

 

 

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5 on April 2, 2002.

Petitioner's 2000 Utah Income Tax Return was not fiiled until June 1, 2001, so late filing penalties and interest were imposed.

PETITIONER died suddenly on DATE, only four days prior to the due date of the income tax returns. His financial information was in the computer, and PETITIONER REP had to get someone from COMPANY A to come and obtain the information from the computer, and still filed the return only approximately six weeks after the due date.

The penalty has been waived, but interest of $$$$$ was imposed. PETITIONER REP has paid the interest in full, but has asked that it be waived and refunded to her. Her reasons are because of the death of her husband, and because it imposed a financial hardship on her because of the substantial reduction in income because of her husband's death.

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).

DISCUSSION

The untimely death of PETITIONER is very unfortunate, and is clearly a reason to waive the penalty, and the penalty has been waived. However, that is not a sufficient reason for waiver of the interest, because Petitioner had use of the money during the time period at issue.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the interest associated with the 2000 Utah Income Tax Return. It is so ordered.

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 appeal rights in this matter.

DATED this 6th day of May , 2002.

 

 

____________________________________

G. Blaine Davis

Administrative Law Judge

 

 

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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

DATED this 6th day of May , 2002.

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner