BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
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.
APPLICABLE 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(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
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner