90-0592 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

XXXXX

Petitioner, :

: INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 90-0592

UTAH STATE TAX COMMISSION, : Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission requesting waiver of interest assessment on Petitioner's income tax liability for XXXXX. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner states that the tax return for the XXXXX tax year was filed by his previous wife and that neither she nor the Tax Commission notified Petitioner that more tax was owed until XXXXX. As soon as Petitioner received notice that additional tax was owing, he paid the tax amount. Petitioner does not feel that he should have to pay all of the interest for the entire period of time that it took the Tax Commission to notify him of the deficiency.

FINDINGS

Utah Code Ann. §§59-1-401 and59-1-402 provide that penalty and interest shall be assessed for the late filing and payment of taxes. Utah Code Ann. §59-1-401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalty or interest assessed under the above statutes.

Such reasonable cause has not been shown for waiver of the interest in this case. There was no penalty assessed. The state was deprived of the tax funds in question for a period of time and should be compensated for that loss of use.

DECISION AND ORDER

Based upon the foregoing facts, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of interest is denied.

DATED this 8 day of August, 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