BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0812
: 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, CPA.
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. Petitioner began a new business in
XXXXX. During early XXXXX, after the
accounting for XXXXX had been completed, Petitioner discovered that, in
Petitioner's representative's words, the receivables were exceedingly
high. This expelled paper income
through an "S" Corporation.
This left no cash flow. The decision was made to file the tax return and
pay the monies owed as soon as the receivables were converted to cash. There was no expectation for this problem.
4. Because of these circumstances and the facts
asserted by Petitioner that Petitioner has never encountered this difficulty
before and has paid his full income taxes for previous years, Petitioner requests
that the penalty be waived in this case.
The Tax Commission records indicate, however, that penalty and interest
were assessed for Petitioner in XXXXX, as well as the year in question.
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
negligence penalty assessed in this case is appropriate. The difficulties which gave rise to the
assessment of the penalty and interest were caused by the negligence of the
Petitioner.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with Petitioner's
individual income tax for the tax year XXXXX.
It is so ordered.
DATED
this 27th day of June, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner