BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX :
)
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0310
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.
XXXXX, Tax Appeals Supervisor, and David J. Angerhofer, Hearing Officer,
heard the matter for the Commission.
XXXXX represented the Petitioner.
Petitioner
prepared his federal and state taxes on the same day for the tax year
XXXXX. Checks were prepared for both
the Internal Revenue Service and the Utah State Tax Commission, but both checks
were mistakenly sent to the Internal Revenue Service. The IRS in turn cashed the check made out to the Utah State Tax
Commission. Since the check cleared
Petitioner's bank, Petitioner was never put on notice that the Tax Commission
did not receive the check with the required forms. Only when the IRS later notified Petitioner that an overpayment had
been made did Petitioner realize that a problem existed.
Petitioner
prepared a second check for the Utah State Tax Commission and paid it on
XXXXX. Respondent assessed a penalty of
$$$$$, and interest of $$$$$ as of XXXXX, on a tax due of $$$$$. Petitioner has
paid the interest but requests a waiver of the penalty.
FINDINGS
Prior
to this Informal Hearing, the penalty had been reduced to $$$$$ from the $$$$$
originally assessed. This reduction
reflects the facts that Petitioner has no other delinquencies, that the IRS
cashed the check made out to the Tax Commission, and that because the check
cleared the bank, Petitioner had no way to know that a problem existed until
the IRS notified the Petitioner of an overpayment. However, the Tax Commission does not waive the penalty entirely
because Petitioner was negligent in failing to include the check with the
return filed with the State Tax Commission.
Therefore, the penalty shall remain at $$$$$.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty on individual income tax account No. XXXXX for
the tax year XXXXX be denied. The
penalty shall remain at $$$$$.
The
assessment of interest by the Collection Division of the Utah State Tax
Commission is affirmed.
DATED
this 4 day of February, 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