BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 90-0973
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. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the 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 individual income tax.
2.
The periods in question are XXXXX.
3.
On XXXXX, an audit by Utah State Tax Commission staff established the
Petitioner's XXXXX Utah individual income tax liability in the amount of
$$$$$. Interest totaling $$$$$ was
subsequently assessed for the period from XXXXX, when the XXXXX tax liability
and accumulated interest were paid in full.
4.
With respect to the Petitioner's XXXXX individual income tax liability, the
Petitioner filed his income tax return for XXXXX on XXXXX, thereby establishing
a tax liability of $$$$$. Payment of
$$$$$ was made at that time, leaving a balance due of $$$$$. Late payment penalty of $$$$$ was assessed
against the Petitioner on XXXXX.
Thereafter, an additional $$$$$ in interest was assessed for the period
from XXXXX until XXXXX. The Petitioner
has paid $$$$$, leaving a balance of $$$$$ with interest computed to XXXXX.
5.
On XXXXX, the Petitioner filed for bankruptcy in XXXXX, listing the Utah State
Tax Commission as an unsecured creditor with a claim of $$$$$ arising from the
Petitioner's unpaid XXXXX taxes.
6.
The Petitioner believed that his tax liability to Utah was discharged as a
result of his bankruptcy. He received
no notice of delinquency or other demand for payment from the Tax Commission
until 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
In
this case, penalty for late payment of tax was imposed against the Petitioner
only with respect to his XXXXX income tax liability. The Petitioner concedes payment of the XXXXX tax liability was
not made when due, and has presented no reason why the resulting penalty should
be waived.
With
respect to interest assessed against the Petitionee for delay in paying his
income tax liability for XXXXX, the Petitioner contends such interest should be
waived due to his good faith belief that the tax had been discharged by his
bankruptcy in XXXXX and his lack of notice from the Tax Commission that any
additional liability existed. While he
may have believed that the tax liability had been discharged, the Petitioner
still had use of the tax money in question during the time for which interest
has been imposed. The assessed interest
is a reasonable charge for the use of the funds during the time they were
improperly held by the Petitioner.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify waiver of the penalty and interest associated with
the Petitioner's XXXXX individual income tax.
The Petitioner's request for waiver is therefore denied. It is so ordered.
DATED
this 16 day of January, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner