93-0939
Income
Signed 11/8/93
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
) INFORMAL DECISION
XXXXX, )
) 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.
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.
Absent
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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