86-1854 - Individual Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX and XXXXX,

Petitioner, :

v. : INFORMAL DECISION

:

AUDITING DIVISION OF THE : Appeal No. 86 1854

STATE TAX COMMISSION OF UTAH, ) Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Auditing Division of the Utah State Tax Commission (Respondent) concerning Petitioner's individual income tax liability for the tax year XXXXX. Petitioner did not request an oral hearing in this matter. Therefore, the Tax Commission decides this matter based on the materials in the file.

Petitioner did not file an individual income tax return for the tax year XXXXX. Therefore, Respondent prepared a non-filing audit on XXXXX. Respondent had no statute of limitations in which to prepare this non-filing audit since Petitioner did not file a return. See Utah Code Ann. §59-14A-86(c) (1953).

Respondent timely filed a warrant on XXXXX. A warrant must be filed within eight years of the statutory due date of the return for the tax year in question. Respondent had eight years from XXXXX in which to file a warrant, i.e., until XXXXX. The warrant was filed well within the deadline.

Petitioner asserted that the statute of limitations for filing of claims for refund begins to start running with the last date of settlement (including the release of liens) by the taxpayers and the State Tax Commission. However, Utah Code Ann. §59-14A-80(7)(a) (1953) states that: no refund or credit may be made or allowed unless the taxpayer or his legal representative files with the State Tax Commission a tax return claiming the refund or credit: (i) within three years from the due date of the return, plus the period of any extension of time for filing the return, or (ii) within two years from the date the tax was paid, whichever period is later. Section 59-14A-80(7)(a) clearly states that the statute of limitations begins on the due date of the return or on the date the tax is paid, whichever period is later. Petitioner paid the tax on XXXXX, but did not file a Petition for Redetermination until XXXXX, almost four years later. Petitioner did not timely file a claim for refund.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's Petition for Redetermination of the tax for the tax year XXXXX be denied. Petitioner has not timely filed a claim for refund. The non-filing audit prepared on XXXXX, is hereby affirmed.

DATED this 1 day of April, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis