BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : ORDER
v. : Appeal No. 93-1403
COLLECTION DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
Respondent. : Tax Type: Income Tax
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call was XXXXX. Present and representing Respondent was XXXXX.
Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to income tax for XXXXX. The underlying amount of income tax owed for this period was $$$$$. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner now appeals this denial.
At the conference Petitioner explained that when he was first contacted that his income tax form was late he tried numerous times to contact the State of Utah to reach a settlement. He stated that employees of the Tax Commission were not accommodating. Petitioner said he wrote several letters and made numerous phone calls to get an appointment to discuss a settlement to keep the penalties and interest from increasing. Petitioner felt the Tax Commission employees were unresponsive. Further, Petitioner thought that his accountant may have applied for an extension.
Respondent stated that Petitioner's account history indicated a pattern of late payments. Respondent stated that from XXXXX through XXXXX Petitioner was late every year except XXXXX. Respondent said that Petitioner did not file and pay the income tax owed for XXXXX until XXXXX, so the late filing and payment penalties with interest were validly assessed. For these reasons Respondent would not recommend waiver of penalties or interest.
Petitioner stated that he thought his accountant had requested extensions for Petitioner for the year in question and subsequent years so that he had not filed or paid late.
Petitioner was given two weeks to provide a letter from his accountant concerning possible extensions for the year in question and subsequent years. However, Petitioner did not provide any further information.
In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.
DECISION AND ORDER
Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive or reduce the penalties of $$$$$ and interest of approximately $$$$$ assessed relating to income tax for XXXXX.
This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:
Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134
Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.
DATED this 11th day of April, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer