93-1668

Income

Signed 2/23/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-1668

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a settlement conference on XXXXX. With Petitioner's approval, the settlement conference was converted to a formal hearing. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented herself.

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 periods in question are the years XXXXX, XXXXX, XXXXX, and XXXXX.

3. According to Tax Commission records, Petitioner and her husband filed the income tax returns for the years listed in XXXXX. These individual income tax returns were filed listing Petitioners as married filing jointly. The delinquent tax amounts were paid in full in XXXXX.

4. Late penalties were assessed on each of the years in question together with interest.

5. Petitioner is seeking a waiver of these penalty and interest amounts.

6. In XXXXX, Petitioner was separated from her husband XXXXX. At times, they tried to reconcile, but their marriage eventually ended in divorce in later years.

7. During the separation, however, Petitioner had a certified public accountant prepare the tax returns for XXXXX and XXXXX in the years they were due. Petitioner then sent the returns to her husband who was living in New Mexico at the time, thinking that he would submit the returns and tax amounts when due to Utah.

8. It should be noted that Petitioner had no income in XXXXX. She was employed, however, in XXXXX, XXXXX, XXXXX, and XXXXX.

9. In XXXXX, Petitioner started receiving notices from the Tax Commission stating that no returns had been filed nor payments received for the years XXXXX, XXXXX and XXXXX.

10. She then learned that her husband had not taken care of their tax liabilities. He had neither filed nor paid income taxes for the years in question.

11. Petitioner's husband was hospitalized in XXXXX for alcohol and drug dependency.

12. Petitioner filed as head of household in XXXXX while her husband's certified public accountant worked to straighten out the couple's tax situation. Petitioner stated that it took approximately six months of research with the Internal Revenue Service and the Tax Commission to get the necessary documentation.

13. Petitioner stated she asked her husband's accountant if she should ask for relief under innocent spouse provisions. He told her not to pursue that option.

14. Petitioners filed their XXXXX and XXXXX returns with the help of an accountant.

15. At this time, Petitioner is trying to resolve the tax delinquencies on her own as tax liens have been filed against her home.

16. Petitioner is currently unemployed and caring for her three children. Her ex-husband is financially strapped as he is caring for his ill father who has costly medical needs.

17. Petitioner is asking for a waiver of penalty and interest assessments based on innocent spouse provisions and hardship.

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, and under Innocent Spouse provisions, the Tax Commission finds that with respect to this Petitioner only, sufficient cause has been shown which would justify a waiver of the tax, penalties and interest assessed on the year XXXXX. For the year XXXXX, the penalties are waived. Interest is calculated on Petitioner's amount of income only. No waiver whatsoever is granted on the years XXXXX and XXXXX. This decision applies to Petitioner's account only. No waiver of any sort is granted on behalf of the joint filer, XXXXX. It is so ordered.

DATED this 23rd day of February, 1994.

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(3)(a).

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