BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
:
Petitioners, )
: AMENDED
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0245
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
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.
FINDINGS
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
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis *
Commissioner Commissioner