86-0087 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0087

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on individual income tax account No. XXXXX for the tax year XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

The tax due for the tax year XXXXX was $$$$$. W-2 withholding amounted to $$$$$, leaving a balance due of $$$$$. The balance was paid on XXXXX. Respondent assessed a late payment penalty of $$$$$ and a late filing penalty of $$$$$, plus interest on the unpaid balance.

Petitioner worked in Utah in XXXXX while attending school but left the state in December, XXXXX. Petitioner was in Europe and South America until XXXXX. Since W-2's had not been distributed before Petitioner left, Petitioner did not know if it was necessary to file a return. Petitioner filed a return and paid her taxes upon her return in XXXXX. Petitioner stated that it is inequitable to assess a $$$$$ penalty on a $$$$$ tax bill.

FINDINGS

Petitioner had the burden of proof to establish that the Respondent assessed penalty and interest in error. Petitioner failed to meet this burden of proof.

A $$$$$ penalty was not assessed on a $$$$$ tax bill. A $$$$$ penalty was assessed for the $$$$$ late payment, and a $$$$$ late filing penalty was assessed because the return was not filed timely. The late filing penalty is assessed on the basis of noncompliance with the filing deadline and is assessed regardless of the amount outstanding.

Because Petitioner worked in Utah during XXXXX, Petitioner had the obligation to determine if it was necessary to file a return and, if so, to timely file. Petitioner was negligent in not making provisions to insure that taxes for XXXXX would be timely filed. Absence from Utah does not relieve a taxpayer of the obligation to pay taxes.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for the tax year XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 1 day of December, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner