92-0337 - Income

BEFORE THE UTAH STATE TAX COMMISSION

___________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-0337

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing by telephone on April 17, 1992. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner 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.

3. Petitioner is appealing the penalty and interest assessments shown on Exhibit A.

4. Petitioner was audited on his XXXXX return. As a result of the audit, he owed an additional $$$$$ in personal income taxes.

5. In XXXXX, Petitioner paid his employees in cash.

6. After seeking advice from the Tax Commission, an accountant and others, Petitioner filed his taxes. Petitioner admits he was confused about how to file or what to pay when he did his taxes.

7. Petitioner has been on a payment plan to pay back his taxes.

8. Petitioner's wife has since undergone a complete hysterectomy and had missed sixteen weeks of work. She has been able to return to work part-time. Currently, Petitioner and his wife earn 40% less in salaries per year.

9. The interest payments in the amount of $$$$$ per month are a hardship for Petitioner and his family of four.

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 Tax Commission waived the $$$$$ penalty assessed for the year XXXXX in light of conflicting information given to Petitioner. The $$$$$ penalty assessed in XXXXX apparently arose out of insufficient funds in withholding taxes.

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 the year XXXXX. Interest is not waived. IT IS SO ORDERED.

DATED this 1st 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