90-0979 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 90-0979

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. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. XXXXX was present at the hearing. No one representing the Respondent appeared at the hearing.

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 the tax years XXXXX.

3. During the periods in question, Petitioner was employed by a small restaurant and was paid as a part owner of that restaurant a small percentage of the profits as his base wage. Petitioner was not on the regular payroll, therefore, Petitioner did not receive a regular paycheck which would normally have the income tax amount withheld from it. Petitioner states that he did not understand how much money he would need to save in order to pay his taxes and he grossly underestimated that amount and was unable to pay when the taxes came due. Based upon these facts, Petitioner requests a waiver of the penalty and interest in this case.

CONCLUSIONS OF LAW

1. 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).)

2. Such reasonable cause has not been shown in this case. Mere negligence or mistake on the part of the taxpayer as is evidenced in this case is not sufficient reasonable cause under the law for waiver of penalty and interest.

DECISION AND ORDER

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

DATED this 20 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