98-1001
Income Tax
Signed 10/19/98
____________________________________
PETITIONER, :
: ORDER
Petitioners, :
: Appeal No.
98-1001
v. : Account No. #####
:
COMPLIANCE
DIVISION OF THE : Tax Type: Income Tax
UTAH STATE TAX COMMISSION, :
STATE OF UTAH, : Presiding: Davis
:
Respondent. :
_____________________________________
Presiding:
G. Blaine
Davis, Administrative Law Judge
Pam
Hendrickson, Commissioner
Appearances:
For
Petitioner: PETIONER
For
Respondent: Ms.
Michelle Bush, Assistant Attorney General, together with Ms. Shelly Robinson
and Mr. J.D. Patterson, from the Auditing Division
STATEMENT OF THE 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 September 1, 1998.
Respondent
made an assessment of additional income taxes against Petitioner for the
calendar years 1989, 1991, 1992, 1993, 1994, 1995, and 1996. Respondent alleges that Petitioner did not
file an income tax return for all of the years at issue. Petitioner acknowledges he did not file an
income tax return for any of the years at issue in this proceeding. Petitioner describes himself as a
Constitutionalist, and most of his defenses are based on his interpretation of
the United States Constitution and the tax laws of the United States and the
State of Utah.
The
first issue raised by Petitioner is he believes Utah Code Ann. §59-10-506
requires the Auditing Division to actually prepare a return and have an auditor
to sign that return for Petitioner pursuant to a Power of Attorney. Respondent acknowledges an actual return was
not prepared or filed, but they treat the statutory notice as a substitute for
the return. The return is subscribed by
the signature block and the electronically generated information thereon.
Petitioner
also challenges the Respondent's failure to give him credit for taxes withheld
from his paycheck. Respondent cites
Utah Code Ann. §59-10-529 which provides that no credit may be allowed unless a
return is filed.
Petitioner
further argues that his pay is in federal reserve notes, and that federal
reserve notes are not taxable.
The
next argument of Petitioner is that requiring him to sign a return violates his
right against self-incrimination, and he also does not like the requirement to
sign a tax return under the penalty of perjury.
Petitioner
further argues that it is a voluntary system of taxation, and he is not willing
to voluntarily file. Further, he
claimed it is allowable to not file because of the privacy act provisions. He also claims federal law provides that he
does not have to file a return until requested to do so by the District
Director of Internal Revenue.
Petitioner
further alleges that his wages are not income as so defined in the Internal
Revenue Code.
APPLICABLE LAW
Chapter
10 of Title 59 clearly requires that returns be filed by taxpayers, and
includes wages as part of the income, both pursuant to that provision and the
Internal Revenue Code.
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission determines that the arguments of
Petitioner are frivolous and without merit.
Accordingly, it is hereby ordered that the audit assessment made by
Respondent is affirmed, and the Petition for Redetermination of Petitioner is
hereby denied. It is so ordered.
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 appeal rights in this
matter.
DATED
this 19 day of October, 1998.
____________________________________
G. BLAINE DAVIS
Administrative Law
Judge
BY ORDER OF THE UTAH STATE TAX COMMISSION.
The
Commission has reviewed this case and the undersigned concur in this decision.
DATED
this 19 day of October, 1998.
Richard B.
McKeown
Chairman
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^^