90‑2162

Income

Signed 2/1/91

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

) Appeal No. 90‑2162

: 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 Petitioners 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. Petitioners state that financial difficulties are the cause of Petitioners' delinquency in filing and paying the taxes in question. Beginning in XXXXX, Petitioners' business contracted to perform the XXXXX on the construction of a certain home. This home was nine months late in being finished due to the fault of the general contractor. The homeowners required the contractor to pay for the delay and the contractor in turn charged each of the subcontractors, including Petitioners' business. Petitioners state that this put them behind in their financial affairs and that this and subsequent other problems have contributed to Petitioners' inability to pay the taxes in question on a timely basis.

4. Petitioners state that they also owed substantial amounts to the Internal Revenue Service (IRS) and that they paid the IRS first because there was more money owing to them than to the state.

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

Financial stress and the inability to pay alone is not sufficient for waiver of the penalty and interest under the law. The Tax Commission recognizes the plight of Petitioners, but if penalty and interest charges were allowed to be waived every time a taxpayer asserted financial stress and inability to pay, then there would be multitudes of taxpayers asserting this as a basis for untimely payment of taxes. Whether or not a taxpayer is in financial stress, it is all too easy for a taxpayer to use for other pressing demands funds to which the state is entitled and which should be remitted as tax. It is for this purpose that penalty and interest assessments are made as an encouragement for taxpayers to timely file and pay their taxes.

Sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the tax year XXXXX.

DATED this 1 day of February, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63‑46b‑13(1), 63‑46b‑14(2)(a).

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