BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0220
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. James E. Harward, Hearing Officer, heard the
matter for the Commission. XXXXX and
XXXXX represented the petitioner.
Petitioner
accepted an overseas assignment during the tax year XXXXX. Petitioner filed
Federal form 2350 to extend the time to file the XXXXX tax return in order to
qualify under IRC Section 911 for the foreign earned income exclusion. Petitioner waited until the Federal adjusted
gross income was determined before filing a Utah return for the tax year XXXXX. Petitioner filed the Utah return on February
26, XXXXX.
Respondent
assessed penalty and interest on the account since the account was not filed by
April 15, XXXXX, and noted on the waiver request form that there was no
evidence of an extension being properly filed with the Tax Commission.
FINDING OF FACTS
Since
the Petitioner established residency outside of the United States for the tax
year XXXXX and since Petitioner filed Federal form 2350 in order to extend the
time to file Petitioner's XXXXX Federal return, Petitioner did not need to file
an extension request with the Tax Commission.
Utah Code Ann. §
59-14A-62(2)(1953) states:
Whenever any federal
income tax return filing is lawfully delayed pending a determination of
qualification for federal tax exemption due to residency outside of the United
States, no Utah state income tax return shall be required to be filed until 30
days after that determination is made.
Petitioner
complied with the Utah code regarding extensions. Subsection 1, which does
require an extension request does not apply in this case. No penalty and interest are due on
Petitioner's account for the tax year XXXXX.
DECISION AND ORDER
It
is the decision and order of the Utah State Tax Commission that penalty and
interest on Individual Income Tax Account No. XXXXX for the tax year XXXXX be
waived.
The
Collection Division of the Utah State Tax Commission is hereby ordered to
adjust its records in accordance with this decision.
DATED
this 15 day of October, 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