BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
XXXXX & XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
) AND FINAL DECISION
) Appeal No. 92-1671
: 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 periods in question are the years XXXXX and XXXXX.
3. Petitioners filed Chapter 13 bankruptcy in April XXXXX. The bankruptcy was granted September XXXXX.
4. Petitioners then began making hefty monthly payments to the bankruptcy trustee.
5. Petitioners filed their XXXXX and XXXXX personal income tax returns in July XXXXX. After withholding credits were applied, a balance was still owing in taxes.
6. In XXXXX, Mr. XXXXX was attempting to buy a car in XXXXX when the dealership told him he had a tax lien.
7. Petitioners immediately contacted the Tax Commission and learned that they owed XXXXX and XXXXX personal income taxes.
8. Mr. XXXXX understood after the bankruptcy that the trustee would pay his debts to the Tax Commission.
9. The Tax Commission had filed a claim for XXXXX personal income taxes when Petitioners initially filed bankruptcy in XXXXX.
10. No delinquency notices had been sent to Petitioners because of the bankruptcy.
11. All penalties previously assessed have been waived. Petitioners are requesting a waiver of the remaining interest assessment.
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
Tax years XXXXX and XXXXX were never part of Petitioner's bankruptcy proceedings as these respective tax liabilities did not exist until after the bankruptcy was granted. Petitioners should have been aware of this fact.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the personal income tax due on the years XXXXX and XXXXX. It is so ordered.
DATED this 18th day of February, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes