92-1254 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

:

: Appeal No. 92-1254

: 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. Petitioner represented herself.

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, XXXXX and XXXXX.

3. Petitioner filed all of her personal income taxes on time, but did not pay in full until XXXXX.

4. Petitioner was assessed late payment penalties, plus interest.

5. The penalties were subsequently waived prior to the formal hearing.

6. Petitioner moved to Utah in XXXXX where she worked off and on.

7. Life did not go well for Petitioner; she was evicted and fell upon rough times.

8. Petitioner later left Utah and went to XXXXX where she lived with relatives.

9. She then moved into a small trailer in XXXXX with her son.

10. In XXXXX, Petitioner was granted a chapter seven bankruptcy in XXXXX.

11. Late in XXXXX, Petitioner's son was killed in her trailer. Petitioner suffers flashbacks from the event and requires heavy medication for her depression.

12. Currently, Petitioner lives on social security income due to her mental disability.

13. Petitioner managed to pay her back taxes after her sister lent her the money.

14. Petitioner asserts that she is financially strapped and cannot pay the interest. Also, she understood that the bankruptcy would solve her tax obligations.

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's tax problems began before the bankruptcy and the loss of her son. In XXXXX and XXXXX, Petitioner did not have enough money withheld from her paychecks to cover her tax liabilities. Subsequent events have brought financial hardship.

In recognition of financial distress and mental incapacity, the penalties were waived.

Based upon the foregoing, however, the Tax Commission finds that sufficient cause has not been shown to grant a waiver of the interest assessed in this matter. It is so ordered.

DATED this 2nd day of October, 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