95-0567
Income Tax
Signed 6/26/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 95-0567
:
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 was XXXXX. Present and representing Respondent were
XXXXX.
Penalties
of $$$$$ with interest of approximately $$$$$ for XXXXX and penalties of $$$$$
with interest of approximately $$$$$ for XXXXX were assessed against Petitioner
relating to income tax. Petitioner had
requested waiver of the penalties and interest from the Collection Division
Waiver Unit which was denied. The
underlying amount of income tax Petitioner owed for XXXXX was $$$$$ of which
$$$$$ had been paid by Petitioner's withholding. Petitioner's income tax for XXXXX was $$$$$ of which $$$$$ had
been paid by Petitioner's withholding.
At
the conference Petitioner stated that he was laid off in XXXXX and he did not
have the money to pay the additional taxes owed for XXXXX or XXXXX. Then in XXXXX of XXXXX Petitioner stated he
was injured in an accident which has left him disabled. Petitioner stated that
he was recently able to pay the additional tax owed for the years in question
and asked that the penalties and interest be waived. Petitioner stated that he should not have to pay penalties and
interest from the time of his injury.
Respondent
stated that Petitioner had not shown sufficient reasonable cause for the waiver
of penalties and interest. Financial
hardship is not accepted as reasonable cause and Petitioner's injury occurred
well after the filings were due and taxes were owed. Respondent explained how the penalties were assessed and that the
amount of the penalties did not increase, although the amount of the interest
did increase, over time. Respondent
stated that the additional taxes owed for XXXXX were paid by the Tax Commission
applying Petitioner's refunds for the years following the years in question.
In considering Petitioner's
request for waiver or reduction of the interest the Tax Commission applies
stringent reasonable cause standards because Petitioner continued to enjoy the
benefit of the use of the funds and the State of Utah was denied the benefit of
the use of the funds from the time the underlying taxes were due until they
were actually paid by Petitioner.
DECISION AND ORDER
Based
upon the information presented at the conference, and the records of the Tax
Commission, the Commission finds that, although the circumstances described by
Petitioner are unfortunate, sufficient cause has not been shown to waive or
reduce the penalties of $$$$$ for XXXXX and $$$$$ for XXXXX or the interest
assessed for either year relating to income tax.
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
Appeals Division
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 26th day of June, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
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