93-0787
Income
Signed 5/27/93
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
)
XXXXX, ) FINDINGS OF FACT,
) CONCLUSIONS OF LAW,
) AND FINAL DECISION
)
) Appeal No. 93‑0787
_____________________________________
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. Present and representing
the Petitioner was XXXXX, XXXXX's certified public accountant.
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 period in question spans the years XXXXX.
3.
Petitioners filed their state individual income tax returns for the
years in question in XXXXX and paid all years in full by XXXXX.
4.
As a result of the late filings, the Tax Commission assessed Petitioners
penalties and interest. For the year
XXXXX, Petitioners were assessed a ten percent penalty for lateness. For the years XXXXX, Petitioners were
assessed two ten percent penalties for both late filing and late payment. For the year XXXXX, Petitioners were assessed
a single ten percent for lateness.
5.
XXXXX testified that he suffered emotional distress when he separated
from his wife in XXXXX, leading to a divorce in XXXXX.
6.
Following the separation, XXXXX found himself out of his home and living
in motels, apartments and with friends at different times.
7.
While he was able to see his three children who were with his wife,
visitation was not pleasant.
8.
In dealing with the instability of his life during this period, XXXXX
turned to alcohol and drank to excess.
9.
After the divorce was final, XXXXX had custody of two of their children
and had his home back. In order to pay off the debts of the marriage, however,
XXXXX sold all of his assets. His home
is currently in foreclosure.
10.
While XXXXX was trying to cope with his failing marriage, he did not
file the federal or state individual income tax returns in question. Later, the
Internal Revenue Service abated the late filing and negligence penalties and
related interest amounts it had assessed on the grounds of alcohol abuse and
psychological trauma.
11.
XXXXX is currently seeking an abatement of penalties and related
interest amounts from the Tax Commission for the same reasons; i.e. that the
alcohol abuse and resulting emotional trauma from that and the divorce, be
considered an illness, qualifying as reasonable cause for abatement of late
filing 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
reducing the penalties on all years to a single ten percent penalty per
year. The interest amounts are not
waived. It is so ordered.
DATED this 27 day of May, 1993.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
Absent
R. H. Hansen Roger O. Tew
Chairman Commissioner
Joe B. Pacheco S. Blaine Willes
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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