93-0470

Income

Signed 9/24/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0470

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner is deceased. The real party in interest, XXXXX, Petitioner's former spouse, was present at the hearing.

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 and XXXXX.

3. According to Tax Commission records, Petitioner failed to pay his XXXXX and XXXXX individual taxes in full. The Tax Commission then filed liens against Petitioner's property located at XXXXX, XXXXX, Utah. The first tax lien for delinquent XXXXX individual income taxes was filed XXXXX. The second lien for delinquent XXXXX individual income taxes was filed XXXXX.

4. Petitioner died on XXXXX.

5. Petitioner's former spouse, XXXXX, is requesting a refund of Petitioner's XXXXX and XXXXX taxes which she paid on behalf of Petitioner when she sold the liened property in XXXXX.

6. The Commission earlier waived all penalty assessments. Ms. XXXXX also wants an abatement of the interest amounts remaining.

7. Ms. XXXXX contends that she should not be obligated to pay for Petitioner's tax delinquencies from the proceeds of the sale of her home based upon the facts of this case.

8. In XXXXX, XXXXX quitclaimed the property referred to above to himself and XXXXX, creating a joint tenancy with full rights of survivorship. 9. Ms. XXXXX testified that Mr. XXXXX helped her buy the house and that she paid him back for the down payment costs. She also paid all of the monthly payments.

10. In XXXXX, Ms. XXXXX married Mr. XXXXX. Later, in XXXXX, they were divorced.

11. In XXXXX, Ms. XXXXX and Mr. XXXXX re-recorded their quitclaim deed earlier entered into in XXXXX.

12. In XXXXX, Ms. XXXXX and Mr. XXXXX remarried.

13. After Mr. XXXXX died in XXXXX, Ms. XXXXX retained the property according to her right of survivorship.

14. In XXXXX when Ms. XXXXX sold the property, she first learned of Petitioner's delinquent XXXXX and XXXXX individual income taxes and the two liens that the Commission had filed against the property.

15. In addition to contending that the Commission should have notified her of these two liens earlier, Ms. XXXXX claims that she is not liable for Mr. XXXXX's XXXXX and XXXXX tax delinquencies given that they were not married during these times. She also feels that the liened property has always been hers, in essence, from as far back as XXXXX as she acted as the true owner throughout the years.

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

The sole controlling factor in this case is that Petitioner was a joint owner of the property in question at the time the Tax Commission filed its liens for tax delinquencies. When Ms. XXXXX became the sole owner of the property after Petitioner's death, she took the property subject to all of its liens and encumbrances which included the tax liens in question.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a refund of the tax amounts paid for the years XXXXX and XXXXX. Interest is not waived. It is so ordered.

DATED this 24th 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

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63-46b-13(1), 63-46b-14(2)(a).

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