BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioners, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0271
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was scheduled for XXXXX.
Petitioners subsequently waived their right to an oral hearing and
requested a decision based on the file.
Petitioners'
evidence indicates that on April 15, XXXXX, they filed an application for an
automatic extension of time to file their individual income tax return. Along with the extension, they sent a check
for $$$$$. On the extension application
Petitioners indicated that they expected to owe $$$$$ in tax for the tax year
XXXXX, and that their XXXXX income tax liability totaled $$$$$. On June 12, XXXXX, the Utah State Tax
Commission received Petitioners' individual income tax return. Petitioners testified that they mailed along
with the return a check in the amount of $$$$$. Petitioners' evidence indicates that because in past years the
tax due to Utah was offset by tax paid to Montana, Petitioners did not expect
to have a tax liability of $$$$$. However, along with the extension
application, Petitioners' sent more than 100% of the previous year's tax
liability in accordance with one of the two alternative requirements for filing
an application for extension under Utah Code Ann. § 59-14A-62(1) (Supp. 1986).
When
Petitioners discovered that the check to the Utah State Tax Commission had not
cleared their account, they contacted their accountant, XXXXX, who in turn
contacted the Utah State Tax Commission.
The Tax Commission indicated that there were some problems but not to
worry. It was not until December 12,
XXXXX, that the Petitioners were informed that a payment was not received with
their return. The Petitioners sent a
replacement check and requested a waiver of the penalties. Respondent denied the Petitioners' waiver
request and indicated that the Petitioners did not meet the requirements for
filing an extension.
Petitioners
sent a copy of their general ledger to the Tax Commission which showed that on
June 7, XXXXX, check no. XXXXX was written to the Utah State Tax Commission in
the amount of $$$$$. Check no. XXXXX
has never cleared the Petitioners' account which indicates that it was lost by
the Tax Commission. Petitioners also sent photocopies of the fronts and backs
of check nos. XXXXX and XXXXX.
DECISION AND ORDER
Based
on the foregoing facts it is the Decision and Order of the Utah State Tax
Commission that the penalty and interest assessed after June 12, XXXXX, be
reduced to $$$$$.
The
Respondent is therefore 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