90-1405 - Individual Income

 

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

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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