93-0559

Income

Signed 12/9/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: INFORMAL DECISION

XXXXX, )

: Appeal No. 93-0559

)

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. As provided for by Utah Code Ann. '63-46b-5, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

Petitioner is requesting a waiver of penalty and interest assessments on individual income tax on the years XXXXX.

According to Tax Commission records, Petitioner filed his individual income tax returns for the four years in question on XXXXX. For the year XXXXX, he paid the tax in full in XXXXX. For the years XXXXX, Petitioner paid the tax amount when he filed the returns.

Two penalties were assessed each year, one for late filing and one for late payment. Interest was also added.

Year Tax Due Late Filing Penalty Late Payment Penalty

XXXXX $$$$$ $$$$$ $$$$$

XXXXX $$$$$ $$$$$ $$$$$

XXXXX $$$$$ $$$$$ $$$$$

XXXXX $$$$$ $$$$$ $$$$$

Petitioner is requesting a waiver of the late penalties and interest based on his following statement:

In XXXXX we borrowed reserve money for our appliance repair business and placed it in mutual funds, expecting to realize enough growth and liquidity of the reserve to satisfy fluctuating requirements of the business. We knew that we would also have to make monthly payments to the lenders of the money. The plan failed and the ensuing four years required working day and night, in an attempt to save the funds. We fell far behind on all of our debts, and our credit was irreparably damaged. During these years we couldn't find time to organize our records for filing tax returns, nor did we have enough money to pay an accountant to do it. Consequently, the returns for XXXXX through XXXXX were not filed when due. We have been struggling for over five years in a condition of near bankruptcy. Because of the circumstances, we hope that a waiver of penalties and interest may be granted.

DECISION AND ORDER

Petitioner describes a situation where he made choices for his business that were not successful. These choices, however, do not relieve Petitioner of his obligation to file returns and pay taxes.

The Tax Commission finds sufficient cause does not exist to waive the penalties and interest associated with the individual income tax due on the years XXXXX. Petitioner could have avoided half of the total penalty amount by at least filing the returns even though he could not pay the tax.

It is so ordered.

DATED this 9th day of December, 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 the final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861-5A-1(p) and Utah Code Ann. '63-46b-14(3)(a).

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