92-1981 - Income

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

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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