BEFORE THE UTAH STATE TAX COMMISSION
: DECISION OF
v. ) INFORMAL HEARING
COMPLIANCE AUDIT SECTION OF THE )
UTAH STATE TAX COMMISSION, : Appeal No. 85-52-0083
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