BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0299
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. David J. Angerhofer, Hearing Officer, heard
the matter for the Commission. XXXXX
represented himself.
Respondent
assessed a penalty of $$$$$ and associated interest on a tax of $$$$$ for the
tax year XXXXX. Respondent's records
indicate that the tax was paid on XXXXX, that there was no record of an
extension, and that the Petitioner did not meet the requirements of an 80% or
100% prepayment.
Petitioner
asserted that he timely filed extension Form TC-546 for the tax year in
question, that this form was stamped by the Tax Commission as being received on
XXXXX, and that Petitioner's CPA mistakenly filled in XXXXX instead of XXXXX in
the top right hand corner of Form TC-546.
Petitioner asserts that he should have received an automatic extension
and requests a waiver of the penalty.
FINDINGS
Form
TC-546, the Application for Automatic Extension of Time to File Utah Income Tax
Return, was received by the Utah State Tax Commission on XXXXX.
Receipt
of Form TC-546 by the Tax Commission is not in itself sufficient for an automatic
extension. Utah Code Ann. § 59-14A-62
(1) (1953) requires, in addition to the application form, a prepayment of at
least 80% of the total tax reported on the income tax return for the current
year or 100% of the total amount of the tax paid for the previous year.
Petitioner
did not prepay 100% of the previous year's income tax liability. Petitioner's Form TC-546 indicates that the
previous year liability was $$$$$.
Petitioner did not prepay 100% of this amount and there was no credit
for W-2 withholding, or any other prepayments or credits.
Petitioner
did not pay 80% of the tax liability for the tax year XXXXX. The tax for XXXXX
was $$$$$. Petitioner did not include
an 80% prepayment with the Form TC-546, and there was no credit for W-2 withholding,
or any other prepayments or credits.
Respondent
properly assessed a penalty in the aggregate of 20% pursuant to Section
59-14A-89(a) since the return was filed four months late. Respondent properly
assessed a $$$$$ civil penalty pursuant to Section 59-14A-92(1) since the
return was not timely filed.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that the request for
waiver of penalty on Individual Income Tax Account XXXXX for the tax year XXXXX
be denied.
The
assessment of penalty and interest by the Collection Division of the Utah State
Tax Commission is hereby affirmed.
DATED
this 7 day of October of 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