BEFORE THE UTAH STATE TAX COMMISSION
PETITIONER, ) ORDER
Petitioner, ) Appeal No. 01-1408
v. ) Account No. #####
TAXPAYER SERVICES DIVISION ) Tax Type: Income Tax
OF THE UTAH STATE TAX ) Penalty & Interest
COMMISSION, ) Tax Period:
Respondent. ) Judge: Davis
G. Blaine Davis, Administrative Law Judge
For Petitioner: PETITIONER
For Respondent: Ms. Laurie Payne, from the Taxpayer Services Division
Ms. Jan Sanchez, from the 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 March 19, 2002.
Petitioner did not file his 1998 Individual Income Tax Return until September 14, 2000, approximately one and one-half years late. His 1999 Individual Income Tax Return was not filed until December 27, 2000, approximately eight months late. Petitioner's 2000 Individual Income Tax Return was filed timely on April 15, 2001. However, a notice was sent to him on May 29, 2001 notifying him of amounts that were due, and he did not timely pay the amounts due. Such amounts were not paid until August 2001, and a 10% late payment penalty was added on in an amount of $$$$$.
In September 2000, Petitioner included a check in an amount of approximately $$$$$, which he said was to pay the tax for 1999, and have the balance applied to the year 2000. However, when he sent that payment he did not clarify the years to which that payment should be applied. Accordingly, Respondent determined Petitioner was entitled to a refund, and he was sent a refund check in an amount of $$$$$, which included $$$$$ in interest.
When Petitioner received the notice to pay the tax due on his 2000 return, which had been sent on May 29, 2001, he believed he had previously paid an amount sufficient to pay the tax, and did not relate the tax due to the refund which he had received.
If Petitioner had given correct instructions as to how the money was to be applied, he would not have received the $$$$$ in interest which he has received, but he may have avoided part of the penalty. Nevertheless, it is clear that the penalty was imposed properly because Petitioner did not timely send the amount of taxes due after receiving the notice.
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 foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the penalty associated with the 2000 Individual Income Tax Return of Petitioner. 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
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 6th day of May , 2002.
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 6th day of May , 2002.
Pam Hendrickson R. Bruce Johnson
Commission Chair Commissioner
Palmer DePaulis Marc B. Johnson