92-1783 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1783

: Account No. XXXXX

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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. Present and representing the Petitioner was XXXXX, a certified public accountant.

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 timely filed his XXXXX state income tax return. Petitioner, however, did not submit payment.

4. Later, in XXXXX, Petitioner filed an amended return, still reflecting an amount due in taxes.

5. In XXXXX, Petitioner paid the tax amount due in full. He now requests a waiver of the penalty and interest assessments.

6. Petitioner's accountant, XXXXX, testified that Petitioner is a general contractor and had difficult years in business in XXXXX and XXXXX. Mr. XXXXX stated that in XXXXX, Petitioner's Utah taxable income was under $$$$$. In XXXXX, Petitioner's taxable income was negative $$$$$.

7. According to XXXXX, Petitioner is experiencing great financial hardship while trying to provide for his wife and five children.

8. Petitioner's financial difficulties stem from contracts he had with other parties who failed to pay him. For example, Petitioner had notes totaling over $$$$$ that were never paid off as a result of business deals that had gone sour.

9. Petitioner's company, XXXXX, is still in business and current on its taxes per Mr. XXXXX.

10. Petitioner is requesting a waiver based on extreme financial hardship.

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 not been shown which would justify a waiver of the penalty and interest assessments associated with the personal income tax due on the year XXXXX. It is so ordered.

DATED this 12th day of March, 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