86-0429 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. )

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0429

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 penalty and interest on individual income tax account No. XXXXX for the tax years XXXXX and 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 the Petitioner.

Petitioner stated that his present wife was responsible for the payment of various bills and had other responsibilities including the filing of state income tax returns. Due to circumstances during the tax years in question, including Petitioner's court battle with his ex-wife over the custody of the children, a requirement of medication for a child of his present wife, and a football injury to another child, there was such stress on his wife that she had a nervous breakdown. Petitioner stated that his wife had given up and had stopped taking care of the bills. Petitioner's CPA had timely prepared the tax return, but Petitioner's wife did not file it. Petitioner further stated that problems were caused due to the fact that Petitioner is a member of the Utah National Guard, and that the Federal Government does not withhold state income tax for weekend drill pay. The withholding had to be estimated for XXXXX and XXXXX.

A tax of $$$$$ was due for the tax year XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.

A tax of $$$$$ was due for the tax year XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.

FINDINGS

Petitioner arranged a payment schedule with the Tax Commission of $$$$$ per month and has complied with this payment agreement.

Petitioner had the burden of proof to establish that Respondent assessed penalty and interest in error. While Petitioner's circumstances are regrettable, they do not justify the failure to file income taxes. Petitioner was responsible for the filing of the taxes, and the fact that his wife failed to file them due to her illness does not relieve Petitioner of the burden of timely filing. Petitioner failed to shift the burden of proof.

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 20 day of November, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner