87-1165 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

v. :

COLLECTION DIVISION OF THE : INFORMAL DECISION

UTAH STATE TAX COMMISSION, : Appeal No. 87-1165

Respondent. : Acct. No. XXXXX

_____________________________________

STATEMENT OF CASE

An informal decision was rendered by the Utah State Tax Commission on XXXXX for the tax years XXXXX; which decision denied Petitioner's request for waiver of penalty and interest on account No. XXXXX. Petitioner appealed to a formal hearing for the tax years XXXXX. A formal hearing was held on XXXXX in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented themselves. During the course of the hearing Petitioner stated that the only issue is the penalty and interest for XXXXX. Petitioner no longer disputed the penalty and interest for XXXXX. Since the years XXXXX are no longer at issue, and since an appeal for the tax year XXXXX has not previously been before the Tax Commission, the Tax Commission hereby converts this hearing to an informal hearing for the purpose of determining the applicability of the penalty and interest for the tax year XXXXX. Petitioner stated that he has attempted to cooperate with the Tax Commission regarding the delinquency. XXXXX was a bad year for Petitioner. Petitioner set forth the same reasons as stated in the informal decision for the tax years XXXXX, dated XXXXX as to why he was in financial difficulty. Petitioner became delinquent in his tax payments because of serious health problems, including heart attacks. Petitioner sold a large home, bought a smaller home, and subsequently lost the smaller home. Consequently, Petitioner lost the tax exemption on the sale of the larger home. Petitioner stated that taxes for XXXXX became delinquent because the Tax Commission agent applied payments for XXXXX backwards the prior delinquent years. Petitioner requests a waiver of the penalty and interest.

FINDINGS

Penalty and interest were properly assessed for the tax year XXXXX since Petitioner did not timely remit the taxes. However, because there was an apparent misunderstanding as to the application of payments, the Tax Commission hereby waives the penalty. Interest shall remain as originally assessed. The Tax Commission was denied the use of the money during the period of delinquency.

DECISION AND ORDER

Based on the foregoing, it is the decision and order of the Utah State Tax Commission that penalty on individual income tax account No. XXXXX for the tax year XXXXX be waived. Interest shall remain as originally assessed. The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 25 day of August, 1988.