BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
) INFORMAL DECISION
) Appeal No. 93‑0939
) Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a settlement conference on XXXXX. With the consent of the parties, the proceeding was converted from a settlement conference to an informal hearing pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission.
Based upon the information contained in the Commission's files and the evidence provided by XXXXX, the Commission makes the following findings.
XXXXX ask the Commission to waive late filing and late payment penalties of $$$$$ for XXXXX and $$$$$ for XXXXX.
XXXXX worked in Utah for several years prior to XXXXX. He was laid off from his Utah employment on XXXXX and began looking for work in other states. He found employment in Idaho and California during XXXXX. XXXXX continued to work in Utah.
During XXXXX, XXXXX worked in Nevada. His wife was not employed during that year.
Prior to XXXXX, XXXXX had always prepared and filed the couple's income tax returns. When it came time to file income tax returns for XXXXX, XXXXX was working in Nevada. The necessary records were in Utah. Also, some of his W‑2 forms from out‑of‑state employers were missing. Although intending to file the returns, he failed to do so in a timely manner. When the XXXXX return came due, the same circumstances existed as for XXXXX, and XXXXX failed to file a timely return.
Finally, XXXXX employed a tax preparer to file their XXXXX and XXXXX returns for them. The XXXXX return showed tax liability of $$$$$ and withholding credits of $$$$$. The remaining $$$$$ in tax liability was enclosed with the return. However, late filing and late payment penalties of $$$$$ each were imposed, as was interest, leaving a balance due of $$$$$.
The XXXXX return established tax liability of $$$$$ and withholding credits of $$$$$. The remaining $$$$$ of tax liability was enclosed with the return. Late filing and late payment penalties of $$$$$ each were imposed, as was interest, leaving a balance due of $$$$$.
Apart from XXXXX and XXXXX, XXXXX have filed and paid their income tax liability in a timely manner. The Internal Revenue Service has waived penalties associated with their federal income tax liability for XXXXX and XXXXX.
DECISION AND ORDER
In considering this request for waiver of penalty, the Commission notes that XXXXX's XXXXX income tax return was filed over two years late and their XXXXX income tax return was filed over a year late. They also failed to pay their tax liability when due.
While the Commission cannot overlook XXXXX's failure to comply with filing and payment requirements, the Commission finds that some mitigating circumstances exist. In particular, their failure to file and pay XXXXX and XXXXX taxes resulted from unusual personal circumstances. Furthermore, a substantial portion of their tax liability was paid during the years in question through withholding and other credits. This is particularly true for XXXXX, where taxes of $$$$$ had been paid during XXXXX, leaving a tax balance of only $$$$$. Finally, they have properly filed and paid their taxes in other years.
In view of the foregoing, the Commission finds reasonable cause to waive all but $$$$$ in penalty for XXXXX and $$$$$ in penalty for XXXXX. Interest charges are not waived. It is so ordered.
DATED this 8 day of November, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
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).