93-1404

Income

Signed 9/10/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-1404

: Account No. XXXXX

_____________________________________

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, Petitioner's spouse.

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 is the year XXXXX.

3. Petitioner and his wife filed their XXXXX individual income tax returns timely, requesting a refund which they received.

Then, in XXXXX, the Tax Commission learned from the Internal Revenue Service that Petitioner had additional income from a source unreported to the state.

4. Petitioner owed an additional $$$$$ in taxes plus interest and a $$$$$ negligence penalty charge. Petitioner was also assessed another penalty in the amount of $$$$$ for failing to pay this delinquency on time.

5. Petitioner's spouse feels that it is unfair to hold her responsible for her husband's actions.

6. In XXXXX and most of XXXXX, Petitioner and his wife, XXXXX, were separated. His wife did not see Petitioner during this entire fifteen month period. Then, in XXXXX, they reconciled.

7. In XXXXX, Mrs. XXXXX prepared and filed their XXXXX individual income tax return after much difficulty in getting her husband to give her the necessary documentation. She knew her husband had worked at XXXXX and believed that the W-2 form he gave her was sufficient.

8. Later, Petitioner and his wife again separated. In XXXXX, Petitioner committed suicide.

9. Eventually, the Internal Revenue Service contacted XXXXX, telling her that Petitioner had additional income from another source, a XXXXX, for the tax year XXXXX. She paid the tax deficiency, penalty and interest although she has no information about this deficiency except the name of Petitioner's alleged employer. Mrs. XXXXX tried to meet with the I.R.S., but could not get any information or relief from them, possibly because the dollar amount involved was so nominal.

10. Central to Petitioner's case is the testimony Mrs. XXXXX gave on the mental health of her deceased husband. Mr. XXXXX lived his married life of twenty-three years with Mrs. XXXXX as an emotionally distraught Vietnam War veteran. For years Petitioner and his wife were in and out of counselling to help both of them deal with Petitioner's inability to cope with his experiences as a prisoner of war.

11. It was not revealed until after Petitioner's death that Mr. XXXXX had never been to Vietnam nor had he ever been a prisoner of war. Petitioner's psychologist was as surprised as Mrs. XXXXX about this information that the U.S. Navy had given them.

12. Since Mr. XXXXX's death, Mrs. XXXXX has been paying Mr. XXXXX's numerous bills that had accumulated unbeknownst to her. She does not know if Mr. XXXXX forgot about his second source of income in XXXXX or if he lied to her and the I.R.S., etc.

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 a waiver of the penalties and interest associated with the individual income tax due on the tax year XXXXX. It is so ordered.

DATED this 10th day of September, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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 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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