BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1501
: 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. Petitioner states that the tax amounts upon
which penalty and interest charges were assessed were imposed upon Petitioner's
income from unemployment compensation during periods when Petitioner was
unemployed. Because the income came
from unemployment compensation, there were no tax amounts withheld. Petitioner was not aware that he would be
required to pay taxes on this income.
Petitioner states that during the years in question, and subsequent
years, he has experienced recurring periods of unemployment, illness and
injuries which have rendered it difficult for him to pay taxes when they came
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 recognizes the difficulties under which Petitioner operated, and
the circumstances of this case.
However, the fact remains that Petitioner did owe tax for the periods in
question, which was not timely remitted, and Petitioner has offered no
persuasive reason beyond hardship for his failure to timely pay these
taxes. Penalty amounts are imposed
largely as an incentive to encourage taxpayers to timely file and pay their
taxes. If the Commission were to waive
penalty and interest assessments for each case in which a taxpayer claimed
hardship or inability to pay, the Tax Commission would be overwhelmed with
untimely payment of taxes and subsequent requests for a waiver of penalty and
interest based upon hardship or inability to pay. It is all too easy for a taxpayer to neglect the timely payment of
taxes during periods of financial strain and to use the funds which should be
remitted to the state to meet other pressing demands. Penalties are imposed in part as a constraint against this
practice.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the tax years XXXXX, XXXXX, and XXXXX.
It is so ordered.
DATED
this 14 day of February, 1991.
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