BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 92-0345
) Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing by telephone on XXXXX. 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 individual income tax.
2. The period in question is the year XXXXX.
3. Petitioner filed his XXXXX income tax return on XXXXX after requesting an extension.
4. Petitioner owed $$$$$ in taxes for the year XXXXX.
5. Petitioner had an outstanding balance of $$$$$ after his withholding taxes were credited.
6. He made a $$$$$ payment on XXXXX, leaving a balance of $$$$$ including interest.
7. Petitioner was penalized 10% of $$$$$ for nonpayment of taxes.
8. Petitioner paid his XXXXX taxes in full on XXXXX.
9. Petitioner began selling parts of a rare, family-owned book collection in XXXXX, causing a dramatic increase in income.
10. He faithfully reported this income on his individual income tax return for XXXXX and requested making monthly installments.
11. Petitioner was unable to pay his taxes when they were due because of cash flow problems.
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
Petitioner basically argues that but for his truthfulness in reporting the book collection sales the Tax Commission would most likely never have learned of the additional income. Petitioner requests a waiver of the penalty for doing what he was obligated to do in the first place.
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 individual income tax for XXXXX. 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
Joe B. Pacheco S. Blaine Willes