94-1445

Income

Signed 4/12/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1445

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Income Tax

_____________________________________

 

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An Informal Hearing was held on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Although Petitioner had been given notice of the Informal Hearing and instructions for appearing by telephone conference call, Petitioner did not appear. Present and representing Respondent was XXXXX.

Based upon the evidence and testimony in the file and presented at the informal hearing, the Commission makes its:

FINDINGS

Penalties in the amount of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to Petitioner's XXXXX income tax. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner is appealing this denial.


In her letter requesting this appeal Petitioner stated that she was in the U.S. Army in XXXXX through XXXXX serving in XXXXX. Petitioner stated in the letter that she entered the military in Oregon and Oregon was her legal state of residence in XXXXX. She stated that she did not think that she was a resident of the State of Utah in XXXXX and therefore did not know that taxes were owed.

At the hearing Respondent stated that the Tax Commission records show that Petitioner filed a State of Utah income tax return for the year XXXXX on XXXXX and some withholdings had been paid to the State of Utah during that year. According to Respondent the balance of the income tax owed by Petitioner was not paid until XXXXX. Respondent stated that this indicated the Petitioner knew she was supposed to file in the State of Utah for the year in question. For this reason Respondent felt Petitioner had not made a showing of reasonable cause. In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the 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.

APPLICABLE 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(10).)

 


DECISION AND ORDER

The Tax Commission finds sufficient cause does not exist to waive the penalty of $$$$$ or the approximately $$$$$ in interest relating to Petitioner's income tax for XXXXX.

DATED this 12 day of April, 1995.

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 a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. '63-46b-15.)

 

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