86-0353 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0353

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. 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.

Petitioner stated that his employer hired him in XXXXX, and assigned him to Denver. In XXXXX Petitioner was transferred back to Utah. The tax information needed for the tax year XXXXX followed the change of addresses. The information was finally received on XXXXX. Petitioner stated that he submitted this information to his accountant on XXXXX, but the Tax Commission records indicate that the tax was not paid until XXXXX.

Petitioner submitted evidence that the Internal Revenue Service reduced the penalty on his federal income tax for the tax year XXXXX and requests that the Tax Commission waive the penalty. Petitioner does not dispute the assessment of the interest.

Respondent assessed a $$$$$ civil penalty pursuant to Utah Code Ann. § 59-14A-92(1)(1953) and assessed $$$$$ in penalty pursuant to Section 59-14A-89(a). The latter penalty accrued at a rate of five percent per month for a total of four months. The total penalty assessed is $$$$$. The interest as of XXXXX, is $$$$$.

Petitioner failed to file an extension request with the Tax Commission for the tax year XXXXX and did not justify this omission. Petitioner's circumstances indicate a need for an extension, but to receive an extension Petitioner needed to comply with Section 59-14A-62, i.e., file and pay 100% of the last year's tax or 80% of the current year's tax. Petitioner failed to do so.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of the penalty 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