BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
: Appeal No.
90-0140
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 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.
The Petitioner applied for an extension of his XXXXX income tax return on
XXXXX. At that time he did not include
the required payment of estimated taxes.
The return for that year was filed late on XXXXX.
4.
As a result of the late filing and payment of the income tax return, a penalty
in the amount of $$$$$ was assessed.
Additionally, a penalty in the amount of $$$$$ was assessed for the
failure to remit the estimated tax due with the request for extension.
5.
The Petitioner filed his XXXXX income tax return timely, however, he failed to
include the necessary amount due to satisfy the obligation, leaving a balance
of $$$$$. As a result, a penalty of
$$$$$ was assessed.
6.
The basis for the late filing and payment of the returns was that in XXXXX the
Petitioner purchased an XXXXX business.
Shortly after his purchase of the business, the person from whom the
XXXXX was purchased siphoned off a lot of the company's assets resulting in
debts and lawsuits. The XXXXX business
continued to decline, and, ultimately, the Petitioner filed a Chapter 7
bankruptcy in XXXXX.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that sufficient cause exists to
waive the extension penalty of $$$$$ which was assessed for the XXXXX income
tax year. The Petitioner's request to
waive the late filing and late payment penalties for that year, and the late
penalty assessed for the XXXXX tax year is denied, as is his request to waive
the interest associated with those income tax years. 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