86-0060 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

                                                                                    :

            Petitioner,                                                                     )

                                                                                    :

                                                                                    )           INFORMAL DECISION

                                                                                    :

                                                                                    )

COLLECTION DIVISION OF THE                                      :           Appeal No. 86 0060

STATE TAX COMMISSION OF UTAH,                              )           Acct. No. XXXXX

                                                                                    :

            Respondent.                                                                 )

_____________________________________

STATEMENT OF CASE

            An Informal Hearing was held on November 7, XXXXX.  XXXXX, Hearing Officer, heard the matter for the Utah State Tax Commission.  XXXXX, represented the Petitioner.

            Mr. XXXXX testified that he is the father of the Petitioner who was a teenager during the XXXXX tax year.  Petitioner had not had income necessary to file a tax return prior to XXXXX, and was not aware of filing requirements on his income.  In XXXXX, stock which Mr. XXXXX had given to Petitioner was sold without the knowledge of Petitioner.  In April, XXXXX, Mr. XXXXX became aware that because of the complexity of his own return, he was going to need to apply for an extension and his C.P.A. made the extension request.  However, an extension request was not made for Petitioner's income.  Mr. XXXXX testified that when he realized that an extension request was not made, he requested a penalty waiver from the Internal Revenue Service and from the Utah State Tax Commission.  The I.R.S. granted the penalty waiver, but the State Tax Commission denied the waiver request.  Mr. XXXXX pointed out that because of the $$$$$ civil penalty and the 5% per month penalty, the penalty and interest totaled significantly more than half the total tax due.

DECISION AND ORDER

            Based on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission not to waive or reduce the penalty or interest.

            DATED this 9 day of January, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

                                                                                                ABSENT

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            G. Blaine Davis

Commissioner   Commissioner