BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX &
XXXXX, ) AND FINAL DECISION
:
) Appeal No.
92-1634
: 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. XXXXX represented Petitioners by telephone.
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 years in question are XXXXX, XXXXX, and
XXXXX.
3. In April XXXXX, Petitioners filed Chapter 13
bankruptcy.
4. This bankruptcy was dismissed XXXXX.
5. Prior to the bankruptcy, Petitioners owed
$$$$$ in personal income taxes for XXXXX, plus penalty and interest
assessments.
6. The bankruptcy court paid $$$$$ of this
balance.
7. The Tax Commission applied another $$$$$ in
refund credit.
8. Currently, Petitioners still owe
approximately $$$$$ for XXXXX. The
interest assessment accounts for this large balance.
9. Also prior to the bankruptcy, Petitioners
owed $$$$$ in personal income taxes for XXXXX, plus penalty and interest.
10. The bankruptcy court paid $$$$$ of this
balance.
11. Petitioners paid $$$$$ toward the balance in
XXXXX.
12. Currently, Petitioners still owe
approximately $$$$$ for XXXXX. Here
again, the interest assessments are significant.
13. Prior to the bankruptcy, Petitioners owed
$$$$$ in personal income taxes for XXXXX, plus interest.
14. Petitioners paid $$$$$ toward the balance in
XXXXX.
15. Currently, Petitioners owe approximately
$$$$$ for XXXXX. The interest
assessment is significant.
16. Petitioners are requesting a waiver of the
penalty and interest assessments on the years in question.
17. They understood from the bankruptcy court
that it had paid off the outstanding tax balances.
18. Petitioners feel that a waiver is in order
as they have tried unsuccessfully to get an explanation of their account status
from the Tax Commission. They state
they have called and written for more information without adequate response.
19. Further, Mr. XXXXX has had periods of
unemployment, making it difficult for Petitioners to make additional payments.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.
§59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission instructs the Collection Division to
review and adjust Petitioners' account, if necessary to abate any interest
amounts assessed during the period of XXXXX through XXXXX (period in
bankruptcy).
The
Tax Commission finds reasonable cause has not been shown which would justify a
reduction of the penalty and remaining interest amounts (after
re-calculation). The bankruptcy record
Petitioners provided at the hearing shows that the bankruptcy court at one
point in time showed a balance due the Commission of $$$$$ of which only $$$$$
was paid out. In any case, a bankruptcy
does not release a taxpayer of liability.
It is so ordered.
DATED
this 7th day of January, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner