86-0370 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0370

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

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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 penalty and interest on individual income tax account No. XXXXX for the tax year 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, Esq., and XXXXX represented the Petitioner.

The tax due and owing for the tax year XXXXX was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on this account.

Petitioner stated that his income tax was not timely filed for XXXXX because an unforeseen financial loss during the first quarter of XXXXX that was beyond his control. Petitioner had invested $$$$$ in an equipment leasing operation, but discovered in XXXXX that the investment was a sham and that he was the victim of a fraud. Petitioner has since become a certified member of a class action suit in a Florida State Court in an effort to recapture his investment. Petitioner stated that he has made a good faith effort to avoid bankruptcy and requests a waiver of penalty and interest.

FINDINGS

Every taxpayer is responsible for his own financial affairs. The Tax Commission requires an investor who reaps a return on his investment to timely remit his taxes. To insure fair and equal treatment of all taxpayers, the Tax Commission must also require timely remittance of taxes from the investor who suffers a loss. The Tax Commission is not in a position to protect investors from the consequences of their own actions.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on individual income tax account No. XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 15 day of October, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

G. Blaine Davis G. Blaine Davis

Commissioner Commissioner