95-0508
Income Tax
Signed
12/4/95
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX, )
Petitioner, : FINDINGS OF FACT,
) CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
)
COLLECTION DIVISION OF THE : Appeal
No. 95-0508
UTAH STATE TAX COMMISSION, )
Respondent. : Account No. XXXXX
) Tax
Type: Penalty & Interest
_____________________________________
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission for a Formal Hearing on XXXXX.
Jane Phan, Administrative Law Judge, heard the matter for and on behalf
of the Commission. Present and
representing the Petitioner was XXXXX.
Present and representing the Respondent were XXXXX.
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 income tax.
2.
The period in question are the years XXXXX.
3
Penalties totaling $$$$$ and interest of approximately $$$$$ were
assessed relating to Petitioner's income tax for the period in question.
4. The
underlying amount of the income tax owed for XXXXX was $$$$$, for XXXXX was
$$$$$ and for XXXXX was $$$$$.
5. Petitioner
suffered from kidney failure, required dialysis and eventually kidney
transplant surgery in XXXXX. In the
recovery process from the transplant and as side effects from medication
Petitioner suffered from infections, memory loss, slurred speech, inability to
write clearly, depression, back problems and other illnesses. During XXXXX and XXXXX Petitioner was
hospitalized on at least five separate occasions.
6. Some
of these health problems have continued from the time of the surgery until the
present. Petitioner continues to have
fine motor skill problems which lead to difficulty in writing and
speaking. Petitioner continues to
suffer from some memory problems and is currently taking numerous medications.
7. Petitioner
filed his Utah individual income tax returns for XXXXX through XXXXX in
XXXXX Petitioner filed his XXXXX and
XXXXX individual income tax returns in XXXXX.
The Respondent had accepted a pay off for these prior years because of
Petitioner's illness and the fact that Petitioner had been given an incorrect
payoff amount from a Tax Commission employee.
8. Petitioner
filed his XXXXX Utah individual income tax return in XXXXX, his XXXXX Utah
individual income tax return in XXXXX, and his XXXXX Utah individual income tax
return in XXXXX. Petitioner paid the
outstanding tax balance for the years in question in XXXXX.
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).)
ANALYSIS
The issue presented for consideration in this
appeal is whether the illness and complications that Petitioner suffered during
the years in question, when considered with the history of late payment and
filing, rise to the level of reasonable cause sufficient for waiver of
penalties. Petitioner asserts that the
penalties and interest should be waived.
Respondents' position is that since the serious illness and
hospitalization occurred five years prior to the years in question it is not
sufficient reasonable cause for waiver of the penalties.
Clearly Petitioner's kidney failure and
transplant in XXXXX were devastating to Petitioner and disruptive to his
ability to complete ordinary tasks,
like filing income taxes in XXXXX..[1]
However, XXXXX is not in issue in this
appeal. Petitioner has already received
a reduction of penalties and interest for the years XXXXX through XXXXX. The period in issue is XXXXX through
XXXXX. During this period Petitioner
testified that he suffered from an
inability to write or speak clearly, various occasional illnesses and
infections, and memory problems.
Respondent stated that serious illness can
constitute reasonable cause for the purposes of waiving penalties if the
illness occurs on or immediately prior to the due date of the return. Respondent points out Petitioner's serious
illness occurred in XXXXX and although Petitioner has some conditions that did
continue through the time at issue, by the time the returns at issue were due
Petitioner should have recognized the conditions and taken steps to have
someone assist him with filing the returns.
Respondent explained that the grounds for
waiving interest are more stringent than for waiving a penalty. Generally interest is waived only in the
event an error on the part of the Tax Commission or Tax Commission employee
caused the late payment or late filing.
DECISION
AND ORDER
Considering that this was not Petitioner's
first late payment or filing and that Petitioner has not shown that he suffered
from serious illness on or immediately prior to the due dates of the returns at
issue, sufficient cause has not been shown for waiver of the penalties.
Interest would be waived only in the event of Tax Commission error which was not
shown to have occurred in this appeal.
Based upon the foregoing, the Tax Commission
finds that sufficient cause has not been shown which would justify a waiver of
the penalties of $$$$$ or interest of approximately $$$$$ associated with the
Petitioner's income tax for the XXXXX tax years. It is so ordered.
DATED this 4th day of December, 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. ''59-1-601(1), 63-46b-13 et. seq.)
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