95-1119

Income

Signed 1/12/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1119

:

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION, :

STATE OF UTAH, :

Respondent. : Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Status Conference, but upon discussion among the parties it was agreed to be converted to an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was Ms. XXXXX. Present and representing Respondent was Mr. XXXXX from the Collection Division.

Petitioner was originally married to Mr. XXXXX. During the course of their marriage, for the tax year XXXXX, Mr. XXXXX did not file an income tax return and the Auditing Division ultimately made an assessment for the taxes due based upon the income shown on Mr. XXXXX's W-2 form. As a result of the audit, a warrant was docketed against Mr. XXXXX on XXXXX, and that docketed warrant became a lien upon all of the property owned by Mr. XXXXX. As of that date, Mr. XXXXX and Petitioner were married and owned a home to which the lien attached.

Petitioner and Mr. XXXXX were divorced in XXXXX, approximately 7 months after the lien was docketed against Mr. XXXXX. At the time of the divorce, Petitioner received a quit claim deed from Mr. XXXXX. But that quit claim deed was not recorded until XXXXX. Petitioner sold the house and discovered the lien upon the house when she went to the closing.

The amount of taxes which were due from Mr. XXXXX have now been paid from the closing of Petitioner's house, and she has requested that the Tax Commission refund the money because the obligation was for the taxes of her former husband.

The Commission finds that at the time the Collection Division docketed the warrant against Mr. XXXXX and obtained a lien against his property, that Mr. XXXXX had an ownership interest in the real property upon which it became a lien. Therefore, the lien was obtained against a taxpayer who owned an interest in the property and was required to pay his taxes. In the opinion of the Commission, the real dispute is between the Petitioner and her former husband, and she must look to him to obtain any redress in this case.

DECISION AND ORDER

Based upon the information presented at the Initial Hearing, and the records of the Tax Commission, the Commission finds that there is no legal basis for refunding to Petitioner taxes which were lawfully and validly collected from a taxpayer who was her former husband. Accordingly, the Petition for Redetermination is hereby denied.

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 12th 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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