BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 90-1053
UTAH STATE TAX COMMISSION, :
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal telephone hearing on XXXXX. Joseph G. Linford, 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 the tax years XXXXX and XXXXX.
3. Petitioner requests a waiver of penalty and interest assessments for the periods in question. For XXXXX, Petitioner alleges that his accountant made an error on Petitioner's tax return and that this was an error of which Petitioner was not aware. Petitioner asserts that he relied upon the accountant's expertise in good faith.
4. Petitioner requests a waiver of penalty and interest in XXXXX because of his status as a part-time resident of Arizona, and his tax return was filed late for that year because it was delayed "in the shuffle" and Petitioner was not able to send it in on time.
CONCLUSIONS OF LAW
1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for the late filing or payment of taxes.
2. Utah Code Ann. §59-1-401(8) provides that upon reasonable cause shown, the Commission may waive or reduce penalties and interest assessed under the above statutes.
3. Such reasonable cause has not been shown for waiver of the penalty and interest in this case. The accountant, in preparing the XXXXX tax return, made an error on that return. Petitioner is responsible for the errors of the accountant in his employ. As for the XXXXX period, Petitioner has also shown no reasonable cause for the waiver of the penalty. Although it may have been difficult for Petitioner to have filed his taxes on time for that year, and it may have been a mere mistake on his part in not so doing, such mere negligence on the part of a taxpayer is not sufficient cause for waiver of a penalty. The interest assessments for both years should also not be waived because the state has been deprived of the use of these tax funds for a period of time and should be compensated for that loss of use.
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 for both years is denied.
DATED this 28 day of August, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis