86-0118 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0118

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This 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 the 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. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Petitioner's individual income tax return for the tax year XXXXX was due on April 15, XXXXX. The total tax due and owing was $$$$$. $$$$$ was prepaid by W-2 withholding and the Petitioner paid an additional $$$$$ on May 14, XXXXX. At that time Petitioner requested the Tax Commission to instruct the Petitioner on paying the remaining amount. Petitioner did not hear from the Tax Commission until the Respondent assessed penalty and interest on this account.

Respondent assessed interest and a penalty of $$$$$ on this account. On December 31, XXXXX, Petitioner paid $$$$$, which amount represented the remaining taxes plus interest. Petitioner appealed the penalty of $$$$$.

FINDINGS

Petitioner did not properly request an extension of time to file the return or pay the remaining tax. Petitioner was negligent in assuming that the Tax Commission would send a payment plan and that the Petitioner could withhold payment until a plan was received.

Respondent properly assessed a late filing penalty of 5% per month for five months, for a total penalty of 25%. Interest on Petitioner's account was also properly assessed but is not appealed.

DECISION AND ORDER

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

The assessment of the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 15 day of October of 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