89-0870 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner : FINDINGS OF FACT

: CONCLUSIONS OF LAW

: AND FINAL DECISION

:

: Appeal No. 89-0870

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 the XXXXX before Joseph G. Linford, Presiding Officer. Petitioner was present at the hearing. No one representing the Respondent appeared at the hearing.

After reviewing the evidence and arguments of the 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. About the time the tax liability in question was incurred, Petitioner and his wife were divorced. Petitioner thought that his former wife had taken care of sending in the tax returns and the taxes after he had signed the tax returns and sent them to her. However, evidently she has not done so.

4. Several notices were sent to Petitioner's ex-wife regarding this tax liability which were never forwarded to him by her and never otherwise taken care of by her.

5. Petitioner had no knowledge that this tax liability had not been paid until he attempted to purchase a home in XXXXX.

6. Consequently, Petitioner contacted the Tax Commission to take care of the liability and also requested a waiver of penalties and interest.

7. Petitioner has paid all amounts due for the period in question including tax, penalties, and interest.

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 for the late filing of tax returns. Utah Code Ann. §59-1-401(8) (1987 Rep., 1989 Supp.) provides that upon reasonable cause shown the Tax Commission may waive or reduce penalties and interest assessed under the above statutes. Such reasonable cause has been shown to waive the penalties in this case because of the circumstances outlined above, it not being the fault of Petitioner that the XXXXX tax liability was not taken care of as he had erroneously assumed. However, reasonable cause for the waiver of the interest portion has not been shown in that the State was deprived for several years of the use of these funds to which it was entitled and the assessment of interest is therefore justified.

DECISION AND ORDER

Based on the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalties in this case be granted and that Petitioner's request for waiver of interest be denied.

DATED this 1st day of December, 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