BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
: ORDER
XXXXX )
: 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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner