BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0206
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 number XXXXX for the tax year XXXXX. An Informal Hearing was held on XXXXX, in
the offices of the Utah State Tax Commission.
XXXXX, Tax Appeals Supervisor, heard the matter for the Commission. XXXXX represented the Petitioner.
XXXXX
filed a joint return for the tax year XXXXX. The total tax due for XXXXX was
$$$$$. XXXXX's Utah State income tax
withholding for XXXXX was $$$$$. The
balance due of $$$$$ was paid on July 31, XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as
of January 29, XXXXX. On April 14,
XXXXX, Petitioner paid the Respondent $$$$$ for the penalties and interest.
XXXXX
stated that she does not object to a penalty on the $$$$$ balance but asserted
that the penalty was based on the full amount of the tax of $$$$$. The penalty should have been assessed only
on the balance due.
FINDINGS
Respondent
did not assess a penalty on the full $$$$$ but on the balance due of
$$$$$. Respondent assessed a 5% per
month penalty pursuant to Utah Code Ann.
§ 59-14A-89(a) (1953) and a $$$$$ late filing penalty pursuant to
Section 59-14A-92(1). Respondent
assessed penalties and interest since the extension request was not timely
filed under XXXXX's social security number.
The
extension request was, however, timely filed.
A mix-up in the filing of the automatic extension Form TC-546 occurred
because it was filed under XXXXX's social security number instead of under
XXXXX's social security number. The
application for extension, Form TC-546, listed "Your social security
number" as XXXXX and "Spouse's social security number" as
XXXXX. A joint return was later filed
for the tax year XXXXX, listing "Your social security number" as
XXXXX and listing "Spouse's social security number" as XXXXX. In other words, the social security numbers
were switched on the joint return.
The
prepayment requirement of Section 59-14A-62(1) was satisfied. This section requires that the payment
accompanying the extension request be at least 80% of the total tax for the
current tax year or 100% of the tax paid for the previous tax year. XXXXX's Utah income tax liability for the
tax year XXXXX was $$$$$. Her Utah
state income tax withholding for the tax year XXXXX was $$$$$. This is in excess of 100% of the XXXXX tax
liability.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that the request for
waiver of penalty and interest on individual income tax account No. XXXXX for
the tax year XXXXX be granted.
Respondent
is ordered to adjust its records in accordance with this decision.
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