86-1849 - Individual Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

                                                                                    :

COLLECTION DIVISION OF THE                          :           Appeal No. 86 1849

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

            Respondent.                                                     :

_____________________________________

STATEMENT OF CASE

            Pray this matter came before the Utah State Tax Commission for an informal hearing on the XXXXX day of XXXXX.  James E. Harward, Hearing Officer, heard the matter for and in behalf of the Tax Commission.  XXXXX was present.

            Petitioner presented evidence that the issue before the Tax Commission is a waiver of the penalty and interest for the XXXXX and XXXXX tax year.  In late XXXXX, the Petitioner was notified by his employer that financial problems were being suffered by the employer and that if the Petitioner would stick it out they would see that he was paid.  Thereafter, numerous paychecks bounced. Eventually petitioner was forced to leave the company with approximately 6 months of back wages owing him.  This substantially affected his ability to pay his income tax for the tax year XXXXX as well as the tax year XXXXX.

            Because of the financial difficulty of the Petitioner's employer, it was necessary for the petitioner to sell his home in order to obtain sufficient funds to live on and pay past due obligations.  It was not until after he had sold the home, and spent the money that he realized that he would be responsible for substantial amounts of capital gains taxes.

            After consultation with a CPA it was decided that returns would be filed even though moneys were not available for the payment of taxes.  Returns were in fact filed with no payment.

            Petitioner now requests a waiver of the penalty and interest on a basis of hardship.

DECISION AND ORDER

            Based upon the foregoing it is the decision and order of the Utah State Tax Commission that the penalty and interest be affirmed without waiver or reduction.

            DATED this 22 day of May, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

                                                                                    ABSENT