BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-0372
: Account
No. XXXXX
_____________________________________
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. XXXXX represented
himself. XXXXX, Assistant Utah Attorney
General, was present and represented the Auditing Division.
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.
2. The period in question is the year XXXXX.
3. Petitioners admittedly filed their XXXXX
state personal income tax return late and also paid the amount owed late.
4. As a result, the Tax Commission assessed
Petitioners a ten percent late filing penalty and a ten percent late payment
penalty, plus interest.
5. At issue is the date that Petitioners
actually filed and paid their XXXXX taxes.
6.
XXXXX states that he filed and included payment for his XXXXX taxes in
XXXXX. He supports his position with a
photocopy of a check carbon, showing check #XXXXX payable to the Tax Commission
for $$$$$ for XXXXX taxes.
7. Further, XXXXX provided a copy of his XXXXX
return dated XXXXX.
8. Additionally, XXXXX submitted a copy of his
bank statement showing the check number sequence in XXXXX. Checks numbered
XXXXX, XXXXX, and XXXXX are listed.
9. XXXXX maintains that his check #XXXXX was
never presented to his bank for payment.
10. It is interesting to note that according to
Petitioners' bank account balance in XXXXX and XXXXX, Petitioners never had
sufficient funds in the bank that would enable check #XXXXX to the Tax
Commission to clear.
11. The Auditing Division records show that in
XXXXX the Tax Commission learned through the Internal Revenue Service that Petitioners
did have income in XXXXX. At that time,
the Tax Commission concluded that Petitioners did not file a XXXXX personal
income tax return, nor did they make payment.
12. Based upon information from the I.R.S., the
Tax Commission calculated Petitioners' Utah taxes and determined they owed
$$$$$ for XXXXX. The two ten percent
penalties were assessed after withholding credits were applied, plus interest.
13. As soon as the Tax Commission contacted
Petitioners, they paid the outstanding balance.
14. XXXXX testified that he had always paid and
filed his personal income taxes on time prior to XXXXX. In XXXXX, he was laid off from the XXXXX and
had to take out his retirement to make ends meet. During this time, XXXXX became immersed in doing all that he
could to survive financially. He did
not balance his checking account at times and did not notice the absence of the
check to the Tax Commission.
15. Petitioners timely filed and paid their
XXXXX and XXXXX taxes; their XXXXX personal income taxes were late.
16. Petitioners claim that the Tax Commission
should have notified them sooner of the XXXXX tax delinquency. The time between XXXXX and XXXXX is costly
to them, especially as it relates to 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
two ten percent negligence penalties assessed for lateness in filing and
payment are justified for the simple fact that Petitioners did ignore their
obligation to file and pay when required to do so. Other demands may have been upon them for other reasons, but they
do not excuse the failure to act. Even
if the Tax Commission accepted Petitioners claim that they filed only two years
late as opposed to fours years as the Auditing Division asserts, two years is
negligence. Petitioners had no problems
filing and paying the intervening years of XXXXX and XXXXX on time.
Petitioners'
assertion that they did file and pay their XXXXX taxes in XXXXX is not
persuasive, especially in the light of the fact that Petitioners' bank account
never had the funds to cover the check.
It may well have been the case that Petitioners intended to file and
make payment, but they have not met their burden of proof to show that they
did.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalties and interest assessed for
the year XXXXX. It is so ordered.
DATED
this 12th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner