BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0186
STATE TAX
COMMISSION OF UTAH, ) Account No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held before the Utah State Tax Commission XXXXX. James E. Harward heard the matter for and in
behalf of the Utah State Tax Commission.
The
Petitioner, XXXXX, was present and represented himself. His wife, XXXXX, was
also present. XXXXX and XXXXX,
Respondents, represented the Collection Division of the Utah State Tax
Commission.
Respondent
presented the following facts and evidence which both parties agreed to. A standard request letter was sent by
Certified Mail to Petitioner which allowed 15 days for a response. Petitioner failed to respond, so Respondent
filed an audit deficiency action asking for a $$$$$ per year evasion penalty. This action was approved by Commissioner,
Mark K. Buchi, and a copy was sent to Petitioner. Upon receiving the audit deficiency letter, XXXXX, who is now
taking care of Petitioner's business, contacted the Collection Division. XXXXX said she had disregarded the first
letter because she thought she had filed a state return when in fact she had
not. Petitioner then filed paying both tax and interest; however, the penalty
remained on the file because it can't be waived by anyone but the Commission.
The issue of this appeal then is the penalty and the interest associated with
that penalty.
The
Petitioner presented evidence of severe health problems during the years in
question. XXXXX, prior to 1977, had
taken care of all the family financial matters including taxes; however,
because of XXXXX's poor health XXXXX was forced to take over all the financial
matters. XXXXX stated that she was unaware of the deficiencies at the time she
received the first letter and when she became aware of the deficiencies she did
her best to rectify the problems.
XXXXX
claims that she did not try to defraud the government. In fact, she presented
credible evidence regarding Petitioner's financial integrity. Just prior to 1977 XXXXX's brother left town
after starting a construction business with XXXXX. XXXXX were left with many unpaid debts. Rather than declare bankruptcy the XXXXX each took on several
jobs and worked hard to pay off all their debts. It was during this time of financial pressure that XXXXX suffered
severe health problems. These include a
major breakdown, a stroke, gallbladder surgery, and continued speech and memory
lapses.
In
view of the difficult situation XXXXX was faced with dealing with records and
taxes for the first time in her life, coupled with the fact that the actual
deficiency was under $$$$$, the Petitioner's contend that the penalty of $$$$$
plus interest is unconscionable and petition the Commission to waive the
penalty and its associated interest.
DECISION AND ORDER
Based
upon the foregoing facts and the evidence presented at the hearing it is the Decision
of the Commission that the penalty be reduced to $$$$$ and the interest
associated with that penalty reduction be waived.
DATED
this 27 day of August, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger.
Tew
Chairman Commissioner
Joe B.
Pacheco
Commissioner