BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 91-1363
UTAH STATE TAX COMMISSION, :
Respondent. : Account No. XXXXX
: Tax Type: Income Tax
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a Formal Hearing on XXXXX. XXXXX, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX. Present and representing the Respondent was XXXXX, Collection Division Legal Unit Manager.
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 income tax.
2. The periods in question are the tax years XXXXX and XXXXX.
3. Penalties in the amount of $$$$$ with interest of approximately $$$$$ for XXXXX and penalties in the amount of $$$$$ with interest of approximately $$$$$ for XXXXX were assessed against Petitioner.
4. Petitioner filed his XXXXX income tax return in XXXXX of XXXXX and the XXXXX return in XXXXX.
5. At the hearing Petitioner testified that several things kept him from filing his income tax timely for the years in question. Petitioner testified that he had an illness which included lesions on his brain and problems with his spine which made him unemployable and because he was unemployable payment of the tax liability would have caused Petitioner financial hardship. Petitioner testified that he was also suffering from emotional depression. Petitioner further testified that because of his illness he was in and out of jail during the period of XXXXX through XXXXX which prevented him from filing the returns. Petitioner testified that he is currently fully disabled and his only income comes from SSI disability payments.
6. Petitioner provided several letters and medical reports from medical providers which documented his medical condition from XXXXX through XXXXX.
7. Respondent questioned Petitioner concerning whether it was the illness or Petitioner's incarceration that kept him from filing and paying the income tax timely. Respondent pointed out that Petitioner's illness was not diagnosed until XXXXX of XXXXX and that Petitioner's incarceration and inability to pay because of financial hardship did not rise to the level of reasonable cause sufficient to waive the penalties or interest.
8. Respondent testified that in addition to the tax years in question, Petitioner had filed his income tax late for the years XXXXX, XXXXX and XXXXX.
9. Petitioner has not paid the underlying income tax liability for XXXXX and XXXXX.
10. Petitioner requested the above captioned appeal by letter on XXXXX. Petitioner stated that he was not contacted by the Appeals Division concerning his request for this appeal until XXXXX of XXXXX.
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(10).)
DECISION AND ORDER
The facts, as described by Petitioner in this matter, are unfortunate. However, Petitioner's history of late filing and payment indicate a history of disregarding the filing deadlines. Furthermore, Petitioner has not paid the underlying tax liability for the years in question.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties of $$$$$ and interest relating to the tax year XXXXX or the penalties of $$$$$ and interest relating to the tax year XXXXX. It is so ordered.
DATED this 5 day of May, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer