86-0291 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0291

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 penalty and interest on individual income tax Account No. XXXXX for the tax years XXXXX through XXXXX. XXXXX (Petitioner) waived the right to an oral hearing, therefore, the Commission decides this matter based on the pleadings before it.

Petitioner is a Nevada resident with an interest in a Utah partnership. On XXXXX, Petitioner received a letter from the Utah State Tax Commission stating that Petitioner had not filed a Utah State Tax Return for the tax year XXXXX. After examining his records, Petitioner determined that a non-resident tax return was necessary for the tax years XXXXX, XXXXX, XXXXX and XXXXX as well as for the tax year XXXXX. On XXXXX, Petitioner paid tax and interest for all five tax years.

On XXXXX, Respondent sent Petitioner a Notice and Demand for penalty and interest for all five tax years. Petitioner requests a waiver of the penalty and requests that interest be computed only to XXXXX, the date that Petitioner paid the tax and interest for the five tax years. Since Petitioner notified the Tax Commission of the fact that tax had not been paid for the tax years XXXXX, XXXXX, XXXXX and XXXXX, and did not wait for a notice from the Tax Commission before paying the taxes, and since the Petitioner promptly paid tax and interest for all five tax years, the Commission hereby reduces the penalty from $$$$$ to $$$$$.

Since any payment from a taxpayer is applied first to penalty then to interest then to the tax, interest is computed to the date that tax liability is satisfied in full.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the total penalty on individual income tax Account No. XXXXX be reduced to $$$$$ for the tax years XXXXX through XXXXX.

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