89‑0385

Income

Signed 4/26/90

 

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

 

XXXXX

Petitioners :

) FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

) AND FINAL DECISION

:

COLLECTION DIVISION OF THE ) Appeal No. 89‑0385

UTAH STATE TAX COMMISSION :

) Account No. XXXXX

Respondent :

_____________________________________

 

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. No one representing either the Petitioners or the Respondent appeared, although notice, dated XXXXX, was duly mailed to the Petitioner. Therefore, this decision is based upon the documents contained in the file.

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 periods in question are the tax years XXXXX.

3. In XXXXX, XXXXX was diagnosed as having cancer in her neck and facial areas. This required major surgery, and although insurance covered a portion of the cost, it still left large medical bills for Petitioners to pay. XXXXX also required reconstructive surgery and psychiatric treatment as a result of this illness, adding to the medical bills for Petitioners to pay.

4. As a result Petitioners began to get behind on all of their bills and obligations. They took out a second mortgage on their home but this did not bring in enough money for them to keep up. Though they were advised to take out bankruptcy by an attorney that was an option they decided not to take. They decided instead to sell their home in XXXXX, which paid them a small amount of money after deducting for real estate fees and the two mortgages that were on the property.

5. In XXXXX, it became necessary for the XXXXX to care for and house XXXXX's elderly mother placing an even greater financial stress on the Petitioners.

6. In XXXXX, XXXXX was diagnosed as being afflicted with a disease, probably chronic fatigue syndrome with symptoms similar to Alzheimer's disease (migraine headaches, depression, lapses of memory, inability to cope with pressure and stress, etc.).

7. During the periods in question, XXXXX had thought that XXXXX had filed the federal and state income tax returns but largely due to his illness, he had not done so.

8. Upon discovering the delinquent taxes due, XXXXX borrowed all of the funds which she could possibly borrow in order to pay for both federal and state taxes that were past due.

9. By letter dated XXXXX, the Tax Commission waived all penalties assessed in this case.

10. Petitioners now request waiver of interest amounts outstanding, and also a refund of interest paid.

CONCLUSIONS OF LAW

1. Utah Code Ann. '' 59‑1‑401 and 59‑1‑402 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. Such reasonable cause has not been shown in this case. The Petitioners' difficulties have already been accounted for in the previous granting of their request for waiver of penalty.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petitioners' request for waiver of interest be denied. It is also ordered that any penalty amounts already paid by Petitioner be refunded, in accordance with the previously granted waiver of penalty.

DATED this 26th day of April, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

 

ABSENT

Joe B. Pacheco G. Blaine Davis Commissioner Commissioner

 

NOTICE: You have ten (10) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. '' 63‑46b‑13(1), 63‑46b‑14(2)(a).

 

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