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.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner