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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner