BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 90-1397
: Account No. XXXXX
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. 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, XXXXX and XXXXX.
3. The tax in question was the result of an Internal Revenue Service (IRS) audit dated XXXXX. This audit adjusted Petitioner's XXXXX tax return and necessitated that amended returns be filed for each of the years in question. The additional assessment was the result of income derived from Petitioner's sale of real property which was given to him in lieu of unpaid commissions on sales that were owed to Petitioner. Petitioner sold that property on contract and the proceeds of the sale were treated by the IRS as a capital gain.
4. By letter dated XXXXX, the Tax Commission waived all penalties associated with this case, but did not waive any interest amount. Petitioner now requests that the interest be waived under the above facts.
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
The extenuating circumstances of this case have been taken into account in the waiver of the penalty assessed for the periods in question. The further waiver of the interest is not appropriate because the state was deprived of the use of the funds in question for a period of time and should be compensated for that loss of use.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the XXXXX, XXXXX and XXXXX tax periods. It is so ordered.
DATED this 20 day of December, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis