BEFORE THE UTAH STATE TAX COMMISSION
: FINDINGS OF FACT,
v. : CONCLUSIONS OF LAW
: AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 89-1932
UTAH STATE TAX COMMISSION :
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission. Present and representing the Petitioners were XXXXX and XXXXX.
Based on the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is income tax.
2. The period in question is XXXXX.
3. The Petitioners filed their XXXXX income tax return in XXXXX after receiving an extension. At that time the Petitioners did not have sufficient funds with which to pay the taxes due.
4. The amount of tax due for that year was higher than anticipated by the taxpayer. The high tax liability was the result of a sale of property in XXXXX made by the Petitioners to XXXXX's restaurant.
5. The sale of property consisted of XXXXX's assuming the obligations of the Petitioners with the mortgage holders. Petitioners did not receive cash for the sale.
6. Also included in the sale of the commercial property to XXXXX's was the home of the Petitioners. Petitioners had agreed with XXXXX's that upon completion of the restaurant, the home of the Petitioners would be reconveyed back to them. That did not occur until XXXXX.
7. The Petitioners were unable to obtain financing on the home until the property had been reconveyed to them. Thus, they were unable to obtain financing with which to pay their income tax obligation.
8. A penalty in the amount of $$$$$ was assessed for the late payment of the XXXXX income tax, however, that was reduced by Commission action to $$$$$. The interest associated with that period was not waived nor reduced by Commission.
9. Petitioners requested that the interest assessed be calculated from XXXXX to the date in which the obligation was paid off which was in XXXXX. It was their position that because they had not received title to their home from XXXXX's until XXXXX, they were unable to make any payments towards their income tax obligations.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(A).)
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a reduction or waiver of interest associated with the XXXXX income tax year. Therefore, the Petitioners' request to waive or reduce the interest for that period is denied.
DATED this 4th day of April, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis