90-0136 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

: Appeal No. 90-0136

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 a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Tax Commission. Present, by telephone, and representing the Petitioner was XXXXX.

Based upon 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 periods in question are XXXXX.

3. In either XXXXX, the Petitioner was audited by the Internal Revenue Service for the tax years XXXXX. That audit by the IRS led to an audit by the Tax Commission.

4. On XXXXX, additional taxes were assessed for XXXXX based upon the results of the audit.

5. The Petitioner was assessed a penalty in the amount of $$$$$ for the late payment of the taxes in question. Interest was also assessed at the statutorily required rate. In the years where the additional taxes owed were the result of an audit, interest was calculated from the date the taxes were due.

6. The Petitioner testified that he filed his income tax returns for the years in question in a timely manner, however, records of the Tax Commission indicate that no returns were filed for the tax years XXXXX.

7. The Petitioner requested a waiver of the penalties and interest for the years in question. Petitioner testified that when he was audited by the IRS, he was informed that the tax obligations owed to the IRS were to be paid prior to his beginning payments to the state of Utah. After the Petitioner satisfied his obligation with the IRS, the Petitioner began making payments to the Tax Commission for taxes due on his State return.

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(8).)

DECISION AND ORDER

In the present case, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties associated with the XXXXX income tax years, nor does the Commission find that a waiver of the interest for those years is justified. It is so ordered.

DATED this 6 day of September, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner