95-1650

Income

Signed 2/7/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1650

:

COLLECTIONS DIVISION OF THE : Serial No. XXXXX

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, and pursuant to discussions between the parties, it was stipulated that the Status Conference could be converted to an Initial Hearing to be held 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 on the telephone and representing Petitioner were XXXXX and her husband, XXXXX. Present and representing Respondent were XXXXX, Assistant Attorney General, together with XXXXX from the Collections Division.

Respondent made an assessment of tax, penalty and interest against Petitioner for failure to file an income tax return for XXXXX, XXXXX, XXXXX, XXXXX, XXXXX, XXXXX, and XXXXX. The assessment of Respondent was based upon an assessment made by the Internal Revenue Service and an RAR received from the Internal Revenue Service. The basis for the assessment by the Internal Revenue Service is unknown.

Petitioner filed an affidavit in which she denied she has worked outside the home and claimed that there are no W-2 or 1099 forms showing income for those years. Instead, she acknowledges having filed some "statement" with the Internal Revenue Service for the years XXXXX through XXXXX. She further claimed that the filing of a form TC-40 cannot be compelled, and "to do so is to "compel a contract", and act forbidden also by fundamental native law." Petitioner further claims that she has been denied her constitutional rights, and that she is under a vow of poverty as a tenant of her religious belief, so that all of her worldly possessions are dedicated to God and the instrumentality of the church of which she is a member.

Respondent had imposed the tax, together with a 10% failure to file penalty and a 50% penalty for intent to evade the tax.

Petitioner has the burden of proof to establish that the assessment made against her by Respondent should be set aside and is not proper. Petitioner has failed to meet that burden of proof.

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

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds that the assessment made by Respondent against Petitioner should be sustained, and that the Petition for Redetermination filed by Petitioner herein should be 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 7th day of February, 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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