BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-0699
: 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. Present and representing the Collections Division of the Utah State Tax Commission 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, XXXXX, and XXXXX.
3. Petitioner cites hardship and inability to pay as the major basis for his request for waiver of the penalty and interest assessed upon his individual income tax liability for the years in question. The Petitioner no longer has tax records for the XXXXX and XXXXX tax years and cannot fully recall why the tax was late for those years. In XXXXX, he thinks that his employer was perhaps withholding tax from Petitioner's wages but was not remitting the tax. However, if this were the case, the employer would be liable to the state for the non-remitted withholding tax and this would have had no impact on Petitioner's for the years XXXXX, XXXXX, and XXXXX, Petitioner thinks that he may have been working in different states during those years and that this contributed to the untimeliness of the filing for these years.
4. In XXXXX Petitioner was laid off from his employment and then obtained new employment in early XXXXX. However, in XXXXX, after approximately three months of work, Petitioner injured his back and has been disabled since that time. Petitioner has been unable to work and has been drawing worker's compensation. Petitioner cites this as the reason for his failure to timely file and pay for the tax year XXXXX. However, the Petitioner's injury does not have any direct relationship to Petitioner's late filing for XXXXX. Petitioner has given no reason why he could not have filed in time for that year.
5. The tax, penalty, and interest assessments in this case have occurred as a result of a Tax Commission audit. Petitioner has paid the tax amounts and now requests that the penalty and interest be waived because of the above factors and because of Petitioner's limited financial means, which render it, in Petitioner's opinion, impossible for Petitioner to pay the penalty and interest amounts.
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 reasons that Petitioner has cited in support of his request for waiver are not sufficient to warrant a waiver of the penalty and interest in this case. There is no indication as to why Petitioner could not have filed and paid the taxes in a timely manner for each of the years in question. The facts as they now stand indicate that Petitioner has several years of delinquencies and no substantial reason why those delinquencies occurred. In addition, interest should not be waived because the state was deprived of the use 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. Financial hardship alone also is not sufficient reasonable cause under the law for waiver of penalty and interest.
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 Petitioner's individual income tax for the tax years XXXXX, XXXXX, XXXXX, and XXXXX. It is so ordered.
DATED this 25th day of June, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis