90-0140 - Income

 

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