BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1405
: 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 period in question is the tax year XXXXX.
3.
The accountant who assisted Petitioner in preparing his XXXXX tax return became
ill during XXXXX and eventually died at or near the XXXXX deadline established
by a valid extension filed by the Petitioner earlier that year. When Petitioner filed the actual return for
the year in question, he did not remit the additional tax because he was
unaware that this additional tax was due.
Petitioner
did not receive any notification from the state of the additional amounts until
a Notice of Refund Applied to Liability, dated XXXXX was received by
Petitioner.
4.
By letter dated XXXXX, the Tax Commission waived all penalties and interest
associated with those penalties for this case.
Petitioner now requests a reduction of interest calculated to one year
from the XXXXX tax liability because Petitioner feels the state was dilatory in
informing him of the additional amounts of tax due.
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
Tax Commission finds that such reasonable cause for waiver of the interest has
not been shown in this case. Due regard
for the circumstances of this case has already been given in the waiver of the
penalty amount. Interest should not be
waived because the state was deprived of the use of the funds in question,
through no fault of its own, for a period of time and should be compensated for
that loss of use. The difficulties in
this case were initially caused by Petitioner's own oversight.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a reduction of the interest associated with the XXXXX
tax period. 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