BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0245
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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 represented the Petitioner. An Informal Decision was rendered on XXXXX, denying Petitioners' request for waiver of penalty and interest because Petitioners did not properly comply with the requirements for filing an extension request. Petitioners subsequently submitted a motion for reconsideration of the decision rendered on XXXXX, asserting that although Petitioners did not meet the 80% payment requirement, this failure does not render the extension request invalid, and that a separate penalty of 1% per month of the amount not paid was calculated and included with the filing of the return.
1. The Commission finds that Petitioners timely filed an extension request but because the Tax Commission operated under the mistaken belief that Petitioners' social security number was XXXXX when, in fact, it is XXXXX, the Tax Commission thought that an extension was not timely filed.
2. Utah Code Ann. § 59-14A-62(1) (Supp. 1986) provides in part:
If the amount of payment is less than 80% of the total tax reported on the income tax return when it is filed or is less than the amount of total tax paid on the income tax return for the previous year, a penalty may be applied to the total of the balance due in the amount of 1% per month from the normal filing date, not to exceed 6% in the aggregate.
3. Utah Code Ann. § 59-14A-87(a) (Supp. 1986) provides in part:
If any amount of income tax is not paid on or before the last date prescribed in this act for payment, interest on such an amount at the rate prescribed in section 59-11-16 shall be paid for the period from such last date paid, whether or not any extension time for payment was granted.
4. Utah Code Ann. § 59-11-16 (Supp. 1986) provides:
The rate of interest applicable to any tax provision administered directly by the state tax commission is 12% per annum through XXXXX. The interest rate in effect after XXXXX, shall be 12% per annum.
DECISION AND ORDER
Based on the foregoing facts and Petitioners' Motion for Reconsideration, it is the Decision and Order of the Utah State Tax Commission that Petitioners' request for penalty and interest waiver be granted. Petitioner included with the return filed within the extension period an amount equivalent to 1% per month penalty and a 12% per annum interest.
DATED this 20 day of November, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis *