BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: Appeal No. 92-1089
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission upon a Petition for Reconsideration, dated XXXXX, filed by the Petitioner as a result of the Commission's final decision, dated XXXXX.
1. Utah Administrative Rule R861-1A-5(P) provides that a Petition for Reconsideration "will allege as grounds for reconsideration either a mistake in law or fact, or the discovery of new evidence." Under this rule, the Tax Commission may exercise its discretion in granting or denying a Petition for Reconsideration.
2. Petitioner timely filed his XXXXX and XXXXX personal income tax returns prior to filing for chapter seven bankruptcy on XXXXX.
3. At the time of the bankruptcy filing, Petitioner had $$$$$ in withholding credit.
4. One penalty was assessed prior to the bankruptcy filing; two others were assessed while the bankruptcy proceedings were underway.
5. Interest was assessed prior to, during, and after the bankruptcy proceedings.
6. The bankruptcy trustee took over control of Petitioner's assets, including his house.
7. The bankruptcy was finalized XXXXX.
8. The bankruptcy trustee paid $$$$$ towards Petitioner's XXXXX and XXXXX tax liabilities in XXXXX. Petitioner owed $$$$$ in taxes (interest and penalty assessments not included) at the time.
9. Petitioner was assessed two legal fees of $$$$$ each in XXXXX.
DECISION AND ORDER
The Tax Commission finds that Petitioner's account has been satisfied with the money paid by the bankruptcy trustee. The interest assessed prior to the grant of bankruptcy is not recoverable. Only $$$$$ of the penalty amount is recoverable. The interest and legal fees assessed thereafter are waived in light of the fact that the trustee had control over Petitioner's funds and assets. It is so ordered.
DATED this 5th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes