BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
:
Petitioner, )
: DECISION
OF
v. ) INFORMAL HEARING
:
COMPLIANCE
AUDIT SECTION OF THE )
UTAH STATE TAX
COMMISSION, : Appeal No. 85-52-0083
)
Respondent. :
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held on this matter on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Utah
State Tax Commission. XXXXX appeared,
representing the Respondent and XXXXX appeared representing the Petitioner.
At
the outset, the parties stipulated that the taxes are due and owing, and that
the failure to file returns and pay the taxes was due to the advise of
XXXXX. Based upon these facts, the
parties have requested that the petition be construed as a request for waiver
of penalty.
It
was further stipulated that the returns would be filed on or about XXXXX
provided the petitioners had any changes or deductions that wanted to be taken
from the Respondent's audit report.
DECISION AND ORDER
Utah
Code Ann. § 59-14A-89(a) sets forth certain penalties for failure to file
income tax return and pay the tax required.
Those penalties range from the greater of $25.00 or 5% of the amount of
such tax per month not to exceed 25% in the aggregate; or the greater of $50.00
or 5% of the total amount of the deficiency; or the greater of $100.00 or 50%
of the deficiency where the failure to file is due to fraud.
The
Tax Commission, after reviewing the facts and proceedings before it finds that
the Petitioners failure to file income tax returns was not due to their willful
neglect, but was based upon the advise of XXXXX, and is therefore, due to
negligence. As a result of this
finding, the Commission determines that the 5% of the total amount of the
deficiency should be assessed and collected as if it were a deficiency.
DATED
this 13 day of November, 1985.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Mark K.
Buchi Gary
C. Cornia
Chairman Commissioner