96-2495

Income Tax

Signed 3/24/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2495

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Income Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An Informal Hearing was held on March 4, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONER. Present and representing Respondent was Kevin Park.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

This appeal involves a refund request for penalty and interest for 1992, 1993 and 1994 income tax years. The 1992 income tax was paid January 28, 1994 and an $$$$$ late payment penalty was imposed with approximately $$$$$ of interest having accrued. For 1993 approximately $$$$$ of penalties were imposed with approximately $$$$$ of interest having accrued. The filing occurred on October 14, 1993 and full payment was not made until July of 1995. For the 1994 income tax year, a $$$$$ late payment penalty was imposed, a $$$$$ late filing penalty and approximately $$$$$ of interest accrued.

Petitioner asserted that grounds for refund exist since she suffers from numerous medical problems, including repressed memory and depression. Petitioner has medical opinions indicating that she is not capable of dealing with financial matters required for timely filing and paying tax obligations.

However, the 1992 and 1993 returns were filed jointly with the returns having been filed properly and Petitioner’s husband having paid the liabilities.

The 1994 income tax return was filed by Petitioner in the status of married filing separately and thus the medical documentation would support waiver for the penalties imposed for the 1994 year.

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

It is hereby found that sufficient cause does not exist to waive the penalty or interest for the 1992 and 1993 income tax years, but sufficient cause does exist to waive and penalties im- posed but not the interest imposed for the 1994 income tax year. It is so ordered.

DATED this 24 day of MARCH, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

GAIL S. REICH

ADMINISTRATIVE LAW JUDGE

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 24 day of MARCH, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-13 et. seq.)

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