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
_____________________________________
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