86-0344 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0344

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 year XXXXX. The Petitioner, in a letter dated XXXXX, waived his right to an oral hearing. Therefore, the Tax Commission decides this matter based on the pleadings before it.

Individual income taxes for the tax year XXXXX were due on XXXXX. Respondent's records indicate that Petitioner paid the tax on XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of $$$$$.

Petitioner asserted that he had to leave Utah on or about the deadline for payment of the XXXXX taxes due to the suicide by a longtime close friend. When Petitioner realized that he could not make the deadline, he telephoned the Tax Commission and received the advice to remit the tax owed as soon as possible and to make a notation that penalty and interest would not apply. Petitioner states that he did follow the verbal instructions and requests a waiver of penalty and interest.

FINDINGS

An emergency such as the one that Petitioner encountered is a legitimate reason to request an extension of time for paying tax. However, the tax must be paid within a reasonable time after the emergency subsides. Petitioner was advised over the telephone to remit the tax as soon as possible.

Petitioner did not remit the tax within a reasonable time. The statutory deadline for the payment of XXXXX taxes was XXXXX. Petitioner did not pay the taxes until XXXXX, ten months later. The emergency did not last ten months and Petitioner did not otherwise justify this excessive delay.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on individual income tax account No. 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 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