BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-0991
: 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. Present and representing the Petitioner was
attorney XXXXX.
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 filed an extension in XXXXX for
his XXXXX income taxes.
4. As a result, his return was due XXXXX,
XXXXX.
5. On XXXXX, XXXXX, Petitioner died.
6. Petitioner and his wife, XXXXX, were in the
process of divorcing when the death occurred.
7. During the marriage, XXXXX was uninformed of
any of her husband's financial and business interests. Petitioner maintained all of the financial records
and apprised his wife of none of his business affairs.
8. After Petitioner's death, XXXXX attempted to
collect Petitioner's business records in order to settle the estate.
9. XXXXX was severely hindered in her efforts
because Petitioner's family refused to provide her with necessary business
information. As it turned out, Petitioner was in business with his family
members.
10. Due to the pending divorce, the family
members were not amenable to giving any information to XXXXX.
11. At one point, XXXXX' attorney, XXXXX, hired
an investigator to obtain information.
12. Once records were obtained, XXXXX was able
to settle her husband's accounts.
13. In XXXXX, Petitioner's XXXXX and XXXXX
personal income tax returns were filed and the taxes were paid.
14. Petitioner and his wife filed jointly.
15. The Tax Commission previously waived the
penalties.
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 assessed negligence penalty, recognizing that XXXXX
was deprived access to the necessary records.
Interest, however, is not waived because XXXXX did have access to
Petitioner's income.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the interest associated with the years in
question. It is so ordered.
DATED
this 31st day of August, 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