90-1499 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX,

Petitioner, :

:

v. : INFORMAL DECISION

:

: Appeal No. 90-1499

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

Petitioner appeals the assessment of $$$$$ in late payment penalty and $$$$$ in interest against his XXXXX individual income tax liability. Pursuant to the Utah Administrative Procedures Act and the rules of the Tax Commission, this matter is conducted as an informal adjudicatory proceeding. As no hearing has been requested, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

Following an IRS audit and adjustment of Petitioner's XXXXX federal income tax return, the Tax Commission notified Petitioner on XXXXX that his XXXXX Utah income tax liability had been increased by $$$$$. He was instructed to pay the additional tax and associated interest by XXXXX. On XXXXX, Petitioner paid only the additional tax due. A $$$$$ late payment penalty was then assessed against him. Petitioner bases his request for waiver of penalty and interest on financial hardship.

DECISION AND ORDER

In considering Petitioner's request for waiver, the Tax Commission notes Petitioner failed to file a correct income tax return for XXXXX, then failed to file an amended tax return, and thereafter failed to promptly pay the tax which was assessed following an audit of that return. Financial hardship does not constitute reasonable cause for failure to pay tax liabilities. The Tax Commission therefore denies Petitioner's request for waiver of penalty and interest. It is so ordered.

DATED this 14th day of September, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner