95-1011
Income Tax
Signed 1/19/96
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 95-1011
:
COMPLIANCE
AUDITING UNIT OF ) Account No. XXXXX
THE COLLECTION
DIVISION, :
:
Respondent. : Tax Type: Income Tax
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an Initial Hearing
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 was
XXXXX.
Petitioner
is appealing the assessment of what he felt was additional income tax, penalty
and interest for the years of XXXXX, XXXXX, XXXXX, XXXXX and XXXXX. For XXXXX the income tax was $$$$$ and
interest assessed $$$$$, with a remaining balance of $$$$$. For XXXXX the tax was $$$$$, the penalty
$$$$$, the interest $$$$$, with a remaining balance of $$$$$. For XXXXX the tax was $$$$$, the penalty
$$$$$, the interest $$$$$ and remaining balance $$$$$. For XXXXX the tax was $$$$$, the penalty
$$$$$, the interest $$$$$ and the balance $$$$$. For XXXXX the tax was $$$$$,
the interest $$$$$ and the unpaid balance was XXXXX. Petitioner's account also shows an unpaid balance for XXXXX, but
he did not request appeal of that year.
Petitioner
admitted that he filed his XXXXX, XXXXX, XXXXX and XXXXX income tax returns
late. He says he had an attorney
prepare his state and federal returns for these years and filed them all at one
time in XXXXX. Petitioner states that
he thought that he had paid the tax due at that time, so he did not understand
when he got notices from the Tax Commission stating that he had a balance of
tax, penalty and interest. Petitioner
did not provide bank records or any other evidence of the amount of taxes that
he had paid. For XXXXX Petitioner knew
that he had not paid all the income tax that he owed.
Petitioner
stated that he could not cope with filing and paying taxes for the years in
questions because he was going through a divorce and had problems of financial
hardship. Further, Petitioner states
that he has current financial hardship problems that would make it very difficult
for him to pay all the taxes, penalties and interest.
Respondent
stated that the records indicated that Petitioner filed the returns late and
that Petitioner had not paid all the income tax owed at that time. Respondent stated that the underlying income
tax amounts were the amounts shown on the tax returns Petitioner had
filed. He stated that Petitioner was
merely delinquent in paying all his taxes.
Further,
he pointed out to Petitioner that any amount Petitioner had paid would first go
towards the interest assessed, then penalty, then tax. Late payment and/or late filing penalties
had been assessed along with interest on the unpaid balance from the date
Petitioner's income tax returns were was due.
So when Petitioner filed the returns for XXXXX, XXXXX, XXXXX and XXXXX
late, in XXXXX, even if he had paid the full income tax amount it would have
been insufficient because of the penalties and interest assessed. Respondent stated that financial hardship is
not considered reasonable cause for the purpose of waiving penalties or
interest.
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
Petitioner
was delinquent in filing and paying his income taxes for a period of several
years and his account history indicates a pattern of late payment and late
filing. From the file and information
presented Petitioner had not paid the full amount of the tax, penalties or
interest when he filed his returns late in XXXXX. Financial hardship is not reasonable cause for waiver of
penalties or interest.
Based
upon the information presented at the hearing, and the records of the Tax
Commission, the Commission affirms the assessment of income tax and finds sufficient
cause has not been shown to waive the penalties and interest assessed for the
XXXXX, XXXXX, XXXXX, XXXXX and XXXXX tax years.
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 19th day of January, 1996.
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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