BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1827
: 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. Petitioner 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 years in question are XXXXX through
XXXXX and XXXXX.
(The year XXXXX is not included in this
appeal as Petitioner had not yet paid the tax).
3. Petitioner failed to file his individual
income tax returns for the years in question due to a lack of ability to pay.
4. Finally, in XXXXX and XXXXX, Petitioner
filed all of the returns in question and made payment of all taxes in full in
XXXXX. Remaining are the substantial
penalty and interest assessments on all of the years in question.
5. Petitioner explained that his problems began
when his employer did not include any deductions from his paychecks beginning
back in XXXXX. From then on, he just
didn't have the money to pay his taxes when they were due so he didn't file any
returns.
6. In XXXXX, Petitioner contacted the Tax
Commission to resolve his income tax account, thinking he could enter a payment
plan of some sort. Unfortunately,
Petitioner lost his job soon thereafter.
7. Petitioner then turned to his 401(k) plan
and withdrew a substantial amount, incurring a large penalty. He used this money to pay his state taxes
($$$$$).
8. Petitioner testified that he now owes the
I.R.S. $$$$$.
9. After a period of unemployment, Petitioner
now works in commission sales. His
40l(k) savings is now depleted along with his savings. He stated that he borrowed from a friend to
make his mortgage payment.
10. At this time, Petitioner's wife is working
part-time at minimum wage. He has four
children to support and finances are tight.
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 reduction of the penalties associated with the
individual income taxes due on the years XXXXX - XXXXX and XXXXX to a single
ten percent penalty on each of the years.
Interest is not waived. It is so
ordered.
DATED
this 13th day of August, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson* Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer*
Commissioner Commissioner