BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0299
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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 $$$$$ and associated interest on a tax of $$$$$ for the tax year XXXXX. Respondent's records indicate that the tax was paid on XXXXX, that there was no record of an extension, and that the Petitioner did not meet the requirements of an 80% or 100% prepayment.
Petitioner asserted that he timely filed extension Form TC-546 for the tax year in question, that this form was stamped by the Tax Commission as being received on XXXXX, and that Petitioner's CPA mistakenly filled in XXXXX instead of XXXXX in the top right hand corner of Form TC-546. Petitioner asserts that he should have received an automatic extension and requests a waiver of the penalty.
Form TC-546, the Application for Automatic Extension of Time to File Utah Income Tax Return, was received by the Utah State Tax Commission on XXXXX.
Receipt of Form TC-546 by the Tax Commission is not in itself sufficient for an automatic extension. Utah Code Ann. § 59-14A-62 (1) (1953) requires, in addition to the application form, a prepayment of at least 80% of the total tax reported on the income tax return for the current year or 100% of the total amount of the tax paid for the previous year.
Petitioner did not prepay 100% of the previous year's income tax liability. Petitioner's Form TC-546 indicates that the previous year liability was $$$$$. Petitioner did not prepay 100% of this amount and there was no credit for W-2 withholding, or any other prepayments or credits.
Petitioner did not pay 80% of the tax liability for the tax year XXXXX. The tax for XXXXX was $$$$$. Petitioner did not include an 80% prepayment with the Form TC-546, and there was no credit for W-2 withholding, or any other prepayments or credits.
Respondent properly assessed a penalty in the aggregate of 20% pursuant to Section 59-14A-89(a) since the return was filed four months late. Respondent properly assessed a $$$$$ 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
Joe B. Pacheco G. Blaine Davis