89-0527 - Individual Income Tax

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX, )

Petitioner, ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW

v. ) AND FINAL DECISION

)

)

) Appeal No. 89-0527

COLLECTION DIVISION OF THE )

UTAH STATE TAX COMMISSION, )

) Acct No. XXXXX

Respondent. )

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on XXXXX before Joseph G. Linford, Presiding Officer.

No one representing either the Petitioner nor the Respondent appeared at the hearing. This decision is accordingly based on a review of the file.

After reviewing the evidence and arguments of parties 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 XXXXX.

3. The amount of taxes due on Petitioner's XXXXX tax return were not paid in full until XXXXX. At that time, he also requested that the penalties and interest assessed for the late payment of his taxes and the late filing of the tax returns be waived. Petitioner based this request for waiver on the fact that his records were "in a shambles" because of his move to California and his preoccupation in beginning his career there.

4. Petitioner also asserts that he should not be required to pay the interest accrued since XXXXX, the date he requested the waiver of penalty and interest, to XXXXX, the date the Tax Commission informed him of the denial of his request for waiver, because of the long delay between those two dates. Petitioner asserts that this delay was the fault of the Tax Commission and, therefore, Petitioner should not have to pay the interest accrued during that amount of time. However, Petitioner also does not allege that he took any responsibility to follow up with the Tax Commission during that period of time in order to see what was occurring regarding his request for waiver. Petitioner also did not avail himself of the option to pay the entire amount--taxes, penalty, and interest--under protest and then file his request for waiver, which if granted would have refunded the amounts of penalty and/or interest that had accrued before such full payment. If Petitioner had done this at an earlier date, interest would not have been accruing over the subsequent period of time.

CONCLUSIONS OF LAW

Utah Code Ann. §§59-1-401 and59-1-402 (1987 Rep., 1989 Supp.) provide that penalties and interest shall be assessed for the late payment of taxes and the late filing of tax returns. Utah Code Ann. §59-1-401(8) (1987 Rep., 1989 Supp.) provides that the Commission may upon reasonable cause shown waive or reduce penalties and interest assessed under the above statutes. Such reasonable cause has not been shown in this case in that Petitioner did pay his taxes very late and Petitioner has not shown any other sufficient cause under the above facts to merit a waiver of the penalties and interest assessed.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalties and interest is hereby denied.

DATED this 5th day of October, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner