BEFORE THE UTAH STATE TAX COMMISSION
Petitioners, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW
v. ) AND FINAL DECISION
) Appeal No. 89-0302
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION )
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Utah Administrative Procedures Act for a formal hearing on XXXXX, before Joseph G. Linford, Presiding Officer. Petitioner, XXXXX, was present at the hearing. No one representing the Respondent appeared.
After reviewing the evidence and arguments of the parties in the record and the recommendation of the presiding officer, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is individual income tax.
2. The period in question is the tax year XXXXX.
3. On XXXXX, Petitioners received a statement of delinquent taxes from the Tax Commission for the tax year XXXXX. Prior to this Petitioners had no knowledge that they had not fully paid all of their taxes for XXXXX. Evidently in that year they had not included as a taxable amount their earnings from "tips not recorded".
4. Petitioners now request a waiver and refund of both the tax and the interest amounts in this case, which have been fully paid by Petitioner. No penalty has been assessed. In the alternative, the Petitioners request at least a portion of the interest amount be waived in view of the fact that it took the State ten (10) years to contact the Petitioners concerning this liability.
5. Tax Commission records show five different addresses for Petitioners since the tax year XXXXX. Evidently, Petitioners have changed their residence a number of times, often to places outside Utah. Under these circumstances, it is apparent that notices from the Tax Commission may have not been able to reach Petitioner until XXXXX.
6. This case was discovered and acted upon by the Commission much earlier than XXXXX. After being notified of the problem by the Internal Revenue Service, the Tax Commission sent the first billing notice to Petitioners on XXXXX. On XXXXX, a Notice and Demand for Payment of Taxes was sent. On May 24, 1983, a Notice of Warrant was mailed. There is no record of a response to any of these notices.
7. Following this, there was a period of inactivity as to this account. Nothing further was sent to Petitioners until XXXXX, when a monthly billing notice was mailed. There was no response to this notice. For more than a year after this, nothing further was done. On XXXXX, the Tax Commission began sending regular monthly billing notices to Petitioners. One of these, dated XXXXX, reached Petitioners.
CONCLUSIONS OF LAW
1. Utah Code Ann. §59-1-401 and59-1-402 provide that penalties and interest shall be imposed upon late payment and filing of taxes.
2. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon reasonable cause shown, waive or reduce penalties and interest assessed under the above statutes.
3. The Tax Commission has no authority under the law to waive tax assessments. Therefore, Petitioners' request for waiver of the actual tax amount must be denied.
4. Reasonable cause for waiver of the interest assessment has been shown. Petitioners should not be responsible for such an inordinate amount of time which it took the Tax Commission to notify them of this problem. Although the Commission did act initially upon this case in a timely manner, subsequent long periods of Commission inactivity doubtless added to the problem.
DECISION AND ORDER
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioners' request for waiver of the tax amount is denied and waiver of interest is granted.
DATED this 3rd day of May, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis