86-0279 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86-0279

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

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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 a $$$$$ penalty on Individual Income Tax Account No. XXXXX for the tax year XXXXX. XXXXX, (Petitioner) c/o XXXXX waived the right to an oral hearing. Therefore, the Tax Commission decides this matter based on the pleadings before it.

Petitioner resided in a foreign country for part of the tax year XXXXX, first arriving in the foreign country on XXXXX. Petitioner filed Federal form 2350 to extend the due date of Petitioner's XXXXX U.S. return to XXXXX, (30 days after the determination date of XXXXX).

Petitioner did this in order to qualify for the exclusion of foreign earned income from the XXXXX tax return. Petitioner was required to wait until XXXXX, in order to qualify. Petitioner then paid the Utah state income tax for the tax year XXXXX on XXXXX. Petitioner asserted that Utah Code Ann. § 59-14A-62(2) provided for an extension of time for filing the Utah income tax return.

Respondent assessed a $$$$$ penalty and asserted that although Petitioner timely filed an extension for the Federal taxes, there is no record of an extension filed with the Utah State Tax Commission.

FINDINGS OF FACTS

Although a taxpayer must file an extension request for Utah Code Ann. § 59-14A-62(1), a taxpayer need not file an extension request if he qualifies under Section 59-14A-62(2). This latter subsection states that:
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.

Utah Code Ann. § 59-14A-62(2). Since Petitioner resided outside of the United States for part of the tax year XXXXX and since Petitioner filed for an extension of the federal income tax for the tax year XXXXX, Petitioner did not need to file a Utah state return until 30 days after the determination date as determined by federal form 2350. Thirty days after the determination date of XXXXX, was XXXXX. Petitioner filed the Utah State tax return on XXXXX, well within the deadline.

DECISION AND ORDER

It is the decision and order of the Utah State Tax Commission that penalty on Individual Income Tax Acct. No. XXXXX for the tax year XXXXX be waived.

The Collection Division of the Utah State Tax Commission is ordered to adjust its records in accordance with this decision.

DATED this 7 day of October, 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