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