90-0010 - Income

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

XXXXX, )

Petitioner, :

)

v. : INFORMAL DECISION

)

: Appeal No. 90-0010

COLLECTION DIVISION OF THE )

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

Respondent. :

___________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Commission. Present by telephone and representing the Petitioner was XXXXX.

At the time the Petitioner's XXXXX income tax return was due, the Petitioner discovered that additional income tax was owed to the state and the federal governments. At that time the Petitioner was without sufficient funds with which to pay the additional taxes. The Petitioner had lost his job, and in XXXXX, he suffered the loss of his baby who died shortly after birth. Medical expenses from that occurrence were in excess of XXXXX.

The Petitioner and his wife believed that it would be best for them to withhold filing their returns and paying the additional taxes due until they were in a position to do so. Thus, their XXXXX and XXXXX income taxes were filed and paid late.

As a result of the late payment, a penalty of XXXXX was assessed for the late payment and filing of the XXXXX return. A penalty of XXXXX was assessed for the late filing and payment of the XXXXX return. Interest at the statutorily prescribed rate was applied for both years.

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that with respect to XXXXX, sufficient cause exists to waive the penalty associated with that income tax year. Sufficient cause has not been shown, however, to waive the interest associated with the same period.

The Tax Commission further finds that with respect to income tax year XXXXX, sufficient cause does not exist which would justify a waiver of either the penalty or interest associated with that year. It is so ordered.

DATED this 29th day of June, 1990.