BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: FINDINGS OF FACT,
xxxxxx, ) CONCLUSIONS OF LAW,
: AND FINAL DECISION
: Appeal No. 93-0144
: Account No. xxxxxx
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was Petitioner's wife, XXXXXX.
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 XXXXXX and XXXXXX.
3. Petitioner filed his XXXXXX individual income tax return in XXXXXX, showing he owed $$$$$ in taxes. Then, he filed an amended return in XXXXXX, showing he owed $$$$$$ in taxes. Finally, in XXXXXX, Petitioner filed a second amended return, showing he owed $$$$$$ in taxes.
4. By the time this third return was filed, however, Petitioner had already paid over $$$$$$ in taxes for XXXXXX. The Tax Commission then recomputed late filing penalties and interest on this last tax liability figure of $$$$$$.
5. The Commission assessed Petitioner a single ten percent late filing penalty of $$$$$$ and $$$$$$ in interest. A total refund to Petitioner, including interest for overpayment, was calculated at $$$$$$. The Tax Commission, however, sent Petitioner $$$$$$ and applied the remaining $$$$$$ to Petitioner's XXXXXX tax deficiency.
6. For tax year XXXXXX, Petitioner filed his return on XXXXXX, showing a tax liability of $$$$$$. A penalty of $$$$$$ was assessed as Petitioner failed to pre-pay and file his extension request by XXXXXX; a second penalty of $$$$$$ was assessed for late filing/payment. Interest in the amount of $$$$$$ was also added.
7. According to Petitioner's waiver request dated XXXXXX Petitioner thinks that he first asked for a waiver of the XXXXXX penalties and interest when he paid the tax amount in XXXXXX.
8. On behalf of Petitioner, who is currently serving time in a federal prison, XXXXXX is seeking a reduction/waiver in the penalty and interest amounts.
9. Petitioner feels that the waiver process in this case has dragged on too long, causing interest to accrue due to the delay.
10. Additionally, XXXXXX is having financial struggles trying to support the family while Petitioner is incarcerated.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a reduction of the penalties and interest assessments associated with the individual income tax due on the year XXXXXX.
Further, the Commission finds sufficient cause exists to reduce the penalties assessed on the individual income tax due on the year XXXXXX from $$$$$$ to $$$$$$ which reflects a penalty of $$$$$$ for failing to pre-pay on the extension request and $50 for failing to file within thirty days of the actual filing date of XXXXXX. The interest on the XXXXXX taxes is ordered recomputed to XXXXXX instead of to XXXXXX.
It is so ordered.
DATED this 22ND day of SEPTEMBER, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer