92-1737 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1737

: 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 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 individual income tax.

2. The period in question is the year XXXXX.

3. Petitioner did not file her XXXXX state income tax return until XXXXX. Her return indicated she owed the state $$$$$. As a result, Petitioner was penalized two ten percent penalties ($$$$$ each) for late filing and late payment plus interest (over $$$$$).

4. In XXXXX, Petitioner was credited $$$$$ from a previous year's tax refund amount.

5. Petitioner states she mailed a $$$$$ payment by check on XXXXX. When the check was not presented to Petitioner's bank for payment, Petitioner called the Tax Commission who instructed her to wait to see if the check clears as it was a busy time for the Commission in April.

6. In early XXXXX, Petitioner called again because her $$$$$ check still had not cleared. The Tax Commission instructed Petitioner to send another check.

7. Petitioner stopped payment on the first check and reissued another check in early XXXXX which cleared her bank without a problem.

8. At this time, Petitioner has not located the first check she sent to the Tax Commission.

9. During this lost check ordeal, Petitioner sent in two other checks to the Commission which cleared her bank.

10. Petitioner states she has sent in $$$$$ which was the amount quoted her as owing for XXXXX taxes, penalties and interest. She does not understand why she still has a balance owing. Further, she contends that she should not pay for any penalty or interest charges assessed during the time the check was lost.

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

Petitioner was assessed two ten percent penalties, one for late filing and one for late payment. Petitioner was late as soon as she missed the deadline of XXXXX for XXXXX returns.

The penalty assessments are not waived as there is no question the Petitioner was late.

Further, the interest assessments are not waived as Petitioner had use of the money while the check was lost. 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