BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0363
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess a $$$$$ late
filing penalty for each of the tax years XXXXX through XXXXX. An Informal Hearing was held on XXXXX, in
the offices of the Utah State Tax Commission.
David J. Angerhofer, Hearing Officer, heard the matter for the
Commission. XXXXX represented herself.
Petitioner
stated that the delayed filings were made because of conditions beyond her
control. Prior to XXXXX, Petitioner had
regularly taken her records to the Internal Revenue Service offices for help in
figuring the tax. From XXXXX on,
Petitioner became lost in bureaucratic red tape. Her materials were apparently lost, a man who usually helped her
with her taxes died and the girl who had helped her the previous year went to
Italy. Petitioner wrote many letters
and made many phone calls, but these were to no avail. Petitioner moved twice
during this period.
In XXXXX a person at
the IRS office helped the Petitioner bring her records up to date. It was determined that Petitioner would have
received the following tax refunds from the state of Utah if she had timely
filed:
XXXXX Utah State Tax Refund $$$$$
XXXXX Utah State Tax Refund $$$$$
XXXXX Utah State Tax Refund $$$$$
XXXXX Utah State Tax Refund $$$$$
Total Refunds $$$$$
Respondent
denied refunds for the tax years XXXXX through XXXXX because the statute of
limitations had run. However, since
there is no statute of limitations for the assessment of a $$$$$ penalty if no
return is filed, Respondent assessed a $$$$$ per year penalty for each of the
tax years XXXXX through XXXXX, for a total penalty of $$$$$. Respondent did not offset the penalties against
the refunds.
FINDINGS
Although
Respondent correctly applied the Utah statutes by denying the refunds, while at
the same time imposing penalties for the tax years XXXXX through XXXXX, the
result is inequitable. Petitioner has
already incurred a de facto penalty of $$$$$ by not timely filing for the tax
years XXXXX through XXXXX. To assess an
additional $$$$$ penalty without offsetting it against the $$$$$ would be
unjust.
DECISION AND ORDER
The
Utah State Tax Commission grants equitable relief in this case, and waives the
$$$$$ per year late filing penalty for each of the tax years XXXXX through
XXXXX.
The
Commission affirms the denial of a refund for each of the tax years XXXXX
through XXXXX.
The
Collection Division of the Utah State Tax Commission is ordered to adjust its
records in accordance with this decision.
DATED
this 9 day of January, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner