93-0313
INCOME
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
In Re: )
:
XXXXX, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
93-0313
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for formal hearing on XXXXX,
XXXXX. Lisa L. Olpin, 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 years in question are XXXXX, XXXXX,
XXXXX and XXXXX.
3. Petitioner is requesting a waiver of the
penalties and interest assessed on the years in question.
4. Petitioner testified that he was audited by
the Internal Revenue Service in either XXXXX or XXXXX. He scheduled to meet with the I.R.S. to
discuss his taxes and gathered all of his documentation in preparation for this
meeting.
5. The night before his appointment with the
I.R.S., however, Petitioner recalls he went to a concert at the
fairgrounds. Sometime during the
concert his truck was broken into and his tax records, among other personal
items, turned up missing.
6. Petitioner explained that the I.R.S. had
disallowed a dependent he had claimed on his taxes in XXXXX and XXXXX which
altered his taxable figures. He had
initially claimed his mother as a dependent since he was caring for her. He admits that he did not file an amended
return with the state within ninety days of the I.R.S.'s final determination.
7. In trying to clear up his individual income
tax account with the state, Petitioner met with the Tax Commission. He learned that the Commission had no record
of Petitioner filing or paying individual income taxes for the years XXXXX and
XXXXX. Further, the Commission had
assessed Petitioner a $50 late payment penalty, a minimal negligence penalty
($$$$) and interest for XXXXX. For
XXXX, the Commission assessed Petitioner another minimal negligence penalty of
($$$$) and interest.
8. Petitioner claims that he did file and pay
for XXXXX and XXXXX, but that he could not prove this because his documents
were lost when his truck was broken into.
9. Further, he added that he went ahead and
filed for XXXXX and XXXXX per the advice of a Tax Commission employee who
allegedly led Petitioner to believe that by participating in the Fresh Start
program, he could get his penalties and interest abated. (The Commission had assessed Petitioner two
$50 late penalties for both XXXXX and XXXXX.
10. Rather than search for old money order
receipts and copies of old filings, Petitioner decided it would be easier to
file his XXXXX and XXXXX returns again since there was no penalty
assessment. Later, Petitioner called
the Fresh Start program directly and learned that his filings under the program
helped him avoid criminal prosecution, not penalty assessments.
11. At this time, Petitioner is helping to support
his mother and sister. The penalties
and interest are a hardship for him.
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 reducing the penalty assessment for the years XXXXX
and XXXXX on individual income tax to $50 for each year. The negligence penalties assessed for the
years XXXXX and XXXXX are waived. The
$50 late penalty assessed for the year XXXXX is not waived. Interest is not waived. It is so ordered.
DATED
this 21st day of June, 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