BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 90-1590
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal telephone 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 through XXXXX and XXXXX.
3. Petitioner was divorced during XXXXX. The divorce had a severe impact upon Petitioner so that he subsequently went through long periods of unemployment and financial difficulties. Petitioner remarried in XXXXX and has since been trying to rebuild his life.
4. Petitioner filed bankruptcy in XXXXX. Petitioner has since paid all of the tax amounts in question and some of the penalty and interest, and now requests a waiver of the penalty and interest assessments.
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 type of bankruptcy under which Petitioner has obtained protection does not discharge penalty and interest charges on delinquent tax obligations, and the Commission finds insufficient evidence upon which to grant a waiver. The Commission recognizes Petitioner's financial stress, but this alone is not sufficient under the law to justify a waiver. Petitioner's taxes over a long period of time were delinquent, and the law mandates that penalty and interest be assessed. Additionally, interest should not be waived because the state was deprived of the tax funds in question for a period of time through no fault of its own 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 penalty and interest associated with the XXXXX through XXXXX and the XXXXX time periods. It is so ordered.
DATED this 8th day of February, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis