92-1997 - Income

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1997

: 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. Representing Petitioner by telephone was XXXXX, a tax consultant.

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. The Tax Commission had previously waived 50% of the penalties assessed for the years XXXXX - XXXXX. For the purposes of this hearing, the year XXXXX was added at Petitioner's request. The interest still remains.

4. Petitioner is seeking a waiver of the remaining penalties.

5. According to Petitioner's sister, XXXXX, Petitioner had noticeably failing health in the last six to eight years. Most apparent was Petitioner's lack of concentration and organizational skills. She seemed very distant in communication at times.

6. Ms. XXXXX added that her sister, who is now in her late seventies, had a brilliant career in complicated real estate and legal matters on behalf of the XXXXX Indian Tribe. She was extremely competent to handle her affairs as well as the problems of others.

7. Mr. XXXXX, a tax consultant, stated that he began working with Petitioner in XXXXX in an effort to help her with financial planning matters. Mr. XXXXX recalls that Petitioner would be very alert at times, and incoherent at other times. He surmised that Petitioner was having physical difficulties of some sort.

8. He stated that her financial record keeping for the years XXXXX, XXXXX and XXXXX were in good shape, but not so for the other years in question. Petitioner did not appear to understand Mr. XXXXX's requests for financial information at times and would be unresponsive.

9. Finally, in XXXXX, Ms. XXXXX tried to contact her sister as they kept in touch regularly. Ms. XXXXX learned that Petitioner had suffered a major brain stem stroke at the time, rendering her very dependent on others.

10. Ms. XXXXX researched into her sister's past and found that Petitioner had suffered a stroke to some degree in XXXXX. Petitioner's doctor concluded that Petitioner had probably been experiencing a series of mini-strokes in the interim before the major stroke in XXXXX. This condition would account for Petitioner's lack of comprehension seen throughout those years.

11. With high blood pressure and severe diabetes, Petitioner's physical condition continues to deteriorate.

12. Mr. XXXXX, in endeavoring to solve Petitioner's financial problems, discovered Petitioner's past due notices on individual income tax filings and payments.

13. Mr. XXXXX was able to complete Petitioner's I.R.S. filings and state filings after much research and help from the I.R.S. Mr. XXXXX gathered the information he needed after two years of working on the case.

14. Mr. XXXXX stated that the I.R.S. waived a substantial amount of Petitioner's penalties.

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 waiver of the remaining penalties associated with the individual income taxes due on the years XXXXX-XXXXX, as well as all penalties assessed on the year XXXXX. Interest is not waived. It is so ordered.

DATED this 12th day of May, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner