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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