BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
: FINDINGS
OF FACT,
XXXXX, ) CONCLUSIONS OF LAW,
: AND FINAL
DECISION
)
: Appeal No.
92-1981
) 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 periods in question are the years
XXXXX-XXXXX.
3. Petitioner filed and paid all of the above
individual income tax returns years late.
As a result, the Tax Commission penalized Petitioner in the following
amounts:
Year Amount
of Penalty Tax
Amount
XXXXX $$$$$$$$$$
XXXXX $$$$$$$$$$
XXXXX $$$$$$$$$$
XXXXX $$$$$$$$$$
XXXXX $$$$$$$$$$
XXXXX $$$$$$$$$$
4. Interest was also added for each year in
question.
5. The Tax Commission previously reviewed
Petitioner's request for a waiver on the penalty and interest amounts for the
years XXXXX and XXXXX. No waiver was
granted.
6. In a separate action taken at a much later
date, the Tax Commission reduced the penalties assessed on the years XXXXX, XXXXX,
XXXXX and XXXXX to ten percent of the total amount of taxes owing for those
years in question, that is, ten percent of $$$$$ or $$$$$. Interest was not waived.
7. Petitioner is requesting a further reduction
in penalties and interest based upon financial hardship.
8. At the hearing in this matter, Petitioner
described his life over the years in question.
His problems began when he moved to Utah from XXXXX in XXXXX. He had just been awarded custody of his
daughter when Petitioner's ex-wife, still in XXXXX, had their daughter seized
by sheriffs and returned to the east coast.
9. Petitioner fought custody and child support
battles during the years in question which totalled exorbitant amounts. Petitioner paid for airline tickets for court
appearances, psychological evaluations and legal expenses.
10. Also in XXXXX, Petitioner's step-son
required emergency care and extensive testing for a neurological problem. Petitioner paid these costs when the child's
natural father's insurance would not pay.
11. Petitioner's wife also encountered medical
problems in XXXXX that required costly treatment and medication. In XXXXX, Petitioner's son was born
prematurely. Petitioner paid for the
necessary twenty-four hour care for several weeks.
12. Then, in XXXXX, Petitioner's daughter was
diagnosed with epilepsy. Petitioner
paid for the many hospital visits and costly medications.
13. Also in XXXXX, Petitioner's father and young
nephew died, requiring Petitioner to twice return to Massachusetts for
funerals. Petitioner later went back
when his ex-wife refused to return their daughter to Utah after visiting. Locating his daughter with the help of
authorities and fighting another legal battle cost Petitioner $$$$$.
14. During the years in question, Petitioner
experienced financial problems with properties he was renting or buying,
causing him to spend large amounts of money at unexpected times.
15. Petitioner is requesting a further
reduction/waiver of the remaining penalty and interest amounts on financial
hardship grounds. He has paid
substantial amounts to both the state and I.R.S.
16. He recalls that he did not file his returns
during the years in question because he did not have the money to pay. He did not know that he would be penalized
for both non-filing and non-payment.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
During
the years in question, Petitioner should have at least filed his individual
income tax returns and contacted the Tax Commission about his situation rather
than to wait, creating a worse situation.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown to reduce the penalties assessed on the individual income tax years of
XXXXX and XXXXX to $$$$$ which is ten percent of the total amount of taxes
owing for those years. No further penalty
reduction is granted on the remaining years XXXXX, XXXXX, XXXXX and XXXXX. Interest is not waived. The Commission directs the Collection
Division to recalculate interest.
DATED
this 10th day of September, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner