87-3140 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-3140

UTAH STATE TAX COMMISSION, : 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 XXXXX. A telephone conference 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 himself. Petitioner stated that he had set aside money for taxes but that he loaned this money to a friend to save his friend's home from foreclosure. Petitioner's friend had agreed to pay Petitioner no later than XXXXX. Petitioner's friend suffers from M.S. and is not able to work, and has not repaid Petitioner. Petitioner requests a waiver of the penalty.

FINDINGS

Petitioner did not file for an extension of time in which to pay the taxes and did not contact the Tax Commission prior to the statutory due date of the return for XXXXX.

Respondent properly assessed penalty pursuant to Utah Code Ann. §59-1-401 (1953). The Tax Commission records indicate that the taxes were not paid until XXXXX.

Although the Tax Commission has the power to "waive, reduce, or compromise . . . " the penalty and interest pursuant to Section 59-1-401(7), the Tax Commission finds no basis on which to waive the penalty in this matter. Although Petitioner's actions in coming to the aid of a friend are commendable, this does not explain Petitioner's failure to contact the Tax Commission prior to the expiration of the deadline for filing his taxes.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to deny Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for XXXXX. The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 2 day of February, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner