92-1520 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1520

: 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 was present and 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 period in question is the year XXXXX.

3. Petitioner filed her XXXXX personal income tax return on XXXXX. At the time of filing, she also paid the amount due after withholding credits were applied.

4. As a result of this untimely filing and payment, Petitioner was assessed two, ten percent penalties plus interest.

5. Petitioner is seeking a waiver of the penalties and interest.

6. In XXXXX in XXXXX, Petitioner separated from her husband and moved to Utah with her children.

7. Petitioner worked in Utah in XXXXX.

8. She retained her accountant in XXXXX to handle her personal income taxes during this time.

9. In XXXXX, properties that Petitioner owned on the east coast with her ex-spouse were sold, creating tax liabilities for Petitioner.

10. Petitioner, however, did not have access to all of the information necessary to filing a complete XXXXX income tax return to Utah.

11. According to Petitioner, Petitioner's accountant filed an extension for XXXXX with the Internal Revenue Service in anticipation of time delays in getting information from Mr. XXXXX.

12. Mr. XXXXX gave Petitioner the financial information Petitioner needed only after ordered to do so in a XXXXX court in XXXXX.

13. Petitioner feels that she should not be penalized for her ex-spouse's refusal to give tax information to her accountant.

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

Based upon the testimony provided at the hearing, the Tax Commission finds sufficient cause has been shown to waive one, ten percent penalty initially assessed for failing to pay in full by the XXXXX due date. Obviously, Petitioner did not have the information she needed in order to determine her tax liability at that time.

The Commission, however, does not waive the remaining ten percent penalty assessed for failure to file on time as Petitioner needed to request an extension from the state as well as the federal government. Interest is not waived. It is so ordered.

DATED this 2nd day of December, 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