92-1727 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1727

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. XXXXX, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented himself.

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 individual income tax.

2. The period in question is the year XXXXX.

3. Petitioner filed and paid his XXXXX personal income tax late.

4. Petitioner is claiming hardship. He has had a series of medical and personal problems in the intervening years.

5. As an employee of XXXXX in XXXXX, Petitioner's health began to fail. His employer terminated him because of his absences due to a heart condition.

6. Petitioner successfully petitioned to regain his job and went back to work in XXXXX.

7. Also about this time, Petitioner's ex-wife took their minor son from Petitioner's custody without the authority to do so.

8. Despite Petitioner's efforts, he did not locate his son for several years.

9. In XXXXX and XXXXX, Petitioner's health continued to wane.

10. In XXXXX, Petitioner was hospitalized five times. In addition to heart problems, he had two detached retinas at the same time. He also had cornea lens implants.

11. In XXXXX, Petitioner lost his father.

12. Also in XXXXX, Petitioner continued heart treatment. In addition to heart valve problems, Petitioner was diagnosed with a severe hypertension problem.

13. Between XXXXX and XXXXX, Petitioner was hospitalized for a total of fourteen weeks in a twelve month period due to heart problems. His heart is working at a third of the normal rate.

14. Further, severe arthritis has caused Petitioner to have surgeries on his knuckles and elbows. A nerve rash of unknown cause has also stricken Petitioner.

15. Petitioner is currently taking numerous prescriptions for his medical conditions.

16. In XXXXX, Petitioner went to XXXXX to help him prepare his XXXXX state income tax return. He claims he sent in full payment with the return and requested a waiver of the $$$$$ penalty plus interest.

17. Then in October XXXXX, Petitioner retired from the XXXXX.

18. In mid-XXXXX, Petitioner was notified by the Tax Commission that he owed his XXXXX taxes. He then went back through his records and found that his XXXXX check never was cashed.

19. By this time, Petitioner states he had no money to pay the tax amount.

20. In XXXXX, Petitioner paid the tax amount in full and requested another waiver of the penalty and interest assessments.

21. As verified with Tax Commission employee XXXXX, Petitioner's initial waiver requests never were processed.

22. By XXXXX, Petitioner still had no response on his waiver request so he filed a fourth request; this time he included the year XXXXX as well as XXXXX.

23. In XXXXX, Petitioner states he filed his fifth waiver request. This request was denied in XXXXX.

24. Petitioner contends that the medical problems he has faced together with the Tax Commission's own delays in processing his requests are grounds for a waiver or reduction of some sort.

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 finds that sufficient cause has been shown which would justify a waiver of the penalty assessment. The interest is waived for the time period of XXXXX through 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