01-0450

Income Tax

Signed 6/20/01

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONERS, )

) ORDER

Petitioner, )

) Appeal No. 01-0450

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Income

THE UTAH STATE TAX ) Tax Period: 1999

COMMISSION, )

) Judge: Rees

Respondent. )

_____________________________________

Presiding:

Irene Rees, Legal Counsel/Hearing Officer

Appearances:

For Petitioner: PETITIONER, taxpayer, and PETITIONER REP, CPA, taxpayer representative

For Respondent: Laurie Allred, Taxpayer Services 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 June 12, 2001.

Petitioners filed a request for extension of time to file their 1999 income tax return. However, Petitioners failed to make the proper prepayment of taxes. Petitioners' total tax due for tax year 1999 was $$$$$, but only $$$$$ had been withheld and remitted. Petitioners state that the oversight was unintentional and arose from a misunderstanding concerning the prepayment requirements.

Respondent reported that the same type of extension penalty had been assessed against Petitioners in 1995. The penalty had not been waived at that time because the Commission did not have a policy in place to allow waiver for first time error. Respondent also pointed out that Petitioners' appeal was received after the filing deadline.

The first notice to Petitioners was issued via a computer generated letter dated January 16, 2001. The letter indicated that any appeal must be filed within 30 days of the date of the letter. Otherwise, payment was due by January 30, 2001. Petitioners' representative filed an appeal, dated February 24, 2001. The representative speculates that he may have focused on the January 30 date rather than the January 16 date. In any event, the letter was not received in the Appeals Unit office until March 19, 2001. The letter had been faxed on that date and time stamped upon receipt. There is no evidence of any copy of the letter reaching the Commission before that date. Even if we construe the facts in Petitioners' favor and assume that the letter was mailed on February 24, 2001, Petitioners' request was filed after the time for appeal had run.

DECISION AND ORDER

Because Petitioners failed to timely file an appeal of the penalty assessment, there is no need to reach a determination on the waiver issue. This matter is dismissed.

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 20^th day of June, 2001.

____________________________________

Irene Rees

Legal Counsel

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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

DATED this 20^th day of June, 2001.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner