92-0325 - Income

BEFORE THE UTAH STATE TAX COMMISSION

__________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

: Appeal No. 92-0325

_________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented himself.

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 personal income tax.

2. The periods in question are the years XXXXX and XXXXX through XXXXX.

3. Petitioner filed his return timely each year.

4. For each of the years in question, Petitioner did not have enough money withheld from his paychecks, leaving a balance owing.

5. Petitioner paid approximately ($$$$) last year in an effort to pay all of his back taxes.

6. In XXXXX, Petitioner filed bankruptcy when a business partnership collapsed.

7. After a year of unemployment followed by another year of sporadic employment, Petitioner landed an engineering position with XXXXX.

8. After the XXXXX XXXXX XXXXX in XXXXX, XXXXX reduced production. Petitioner's salary was reduced ($$$$) yearly.

9. In XXXXX, Petitioner left XXXXX in anticipation of pending lay-offs and began working at XXXXX.

10. Petitioner was then laid off work in XXXXX for six months before he found work with XXXXX.

11. In the meantime, Petitioner's individual income account was deemed "uncollectible" due to hardship.

12. XXXXX sent Petitioner to California where Petitioner lived for two years while maintaining his Utah home.

13. In XXXXX, Petitioner was able to transfer back to Utah where he continues working for XXXXX.

14. Petitioner has been paying ($$$$) per month on a scheduled plan to bring his account current.

15. These ($$$$) monthly payments have caused Petitioner's other creditors to close accounts, to pursue collection services, and to threaten foreclosure.

16. Petitioner requests a waiver of penalties and/or interest.

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 penalty assessment exists for failure to pay in a timely manner. The interest is assessed on the unpaid amounts. While Petitioner has experienced a difficult financial history, sufficient cause has not been shown to justify a waiver of the penalties and interest associated with the periods in question. It is so ordered.

DATED this 13th day of July, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner