85-0239 to 85-0240 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

:

)

Petitioner, :

) DECISION OF

v. : INFORMAL HEARING

)

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, ) Appeal No. 85-0239

: and 85-0240

Respondent. )

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STATEMENT OF CASE

An Informal Hearing was held before the Utah State Tax Commission on XXXXX, and XXXXX. Presiding for and in behalf of the Utah State Tax Commission was XXXXX, Hearing Officer. XXXXX represented the Petitioner.

Petitioner suffered from mental illness from approximately XXXXX until XXXXX, when he attempted suicide. During his illness, he was unable to rationally deal with his business affairs or meet his financial obligations. Tax liabilities accrued and XXXXX failed to file some tax returns. After the Petitioner's hospitalization during the winter and early spring of XXXXX, he received professional help in rehabilitating his personal and family life, rebuilding his business and paying his obligations. In XXXXX or XXXXX, Petitioner requested a waiver of the penalties assessed on his individual income and sales and use tax obligations. He indicated that he could orderly retire his obligations including all of his taxes and interest, however, because he did not have the equity in his home to pay all of the obligations including the penalties, he requested the penalty waiver.

By letter dated XXXXX, to XXXXX, Attorney for the Petitioner, XXXXX, a Compliance Agent with the State Tax Commission, indicated that the State Tax Commission had agreed to release all liens against XXXXX in exchange for a check for a certain amount which represented XXXXX's bill to the state for taxes plus interest. The Petitioner thereafter paid an amount representing his tax bill plus all of the interest that had accrued to that time.

DECISION AND ORDER

Based upon the reliance of the Petitioner on the letter from XXXXX, the Commission is pursuaded to waive the penalty plus any interest that may have accrued as a result of the imposition of the penalty.

DATED this 6th day of May, 1986.