86-2152 - Individual Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX and XXXXX,

Petitioners, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 86 2152

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

An informal hearing by telephone conference call was held on XXXXX. XXXXX, Tax Appeals Supervisor, heard the matter for the Utah State Tax Commission. XXXXX represented the Petitioners. XXXXX is protesting the penalty and interest assessed against his XXXXX individual income tax return.

XXXXX said that his accountant failed to file an extension with the State of Utah, thinking that filing an extension with the Internal Revenue Service would be sufficient. The return was filed on XXXXX. The total income tax due for XXXXX was $$$$$. Three hundred two dollars were withheld during the course of the year, and XXXXX paid the balance due of $$$$$. XXXXX indicated that he subsequently discovered that a late filing penalty had been applied to his account and that he now owed over $$$$$ in penalty and interest. XXXXX feels that the penalty was unfair because he and his wife owed only $$$$$ more than the amount that was withheld, and he emphasized his accountant's incompetence in preparing and filing the proper documents with the State Tax Commission. For these reasons, XXXXX feels that the penalty and interest applied to his 1984 individual income tax should be waived.

DECISION AND ORDER

Based on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest be denied. Utah Code Ann. §59-14A-92(1) (Supp. 1986) provides:

Every person who, without fraudulent intent, fails to make, render, sign, or verify any return, or to supply any information within the time required . . . is liable to a penalty of $50 to be imposed, assessed, and collected by the tax commission (Emphasis added.) Respondent correctly assessed the $50.00 filing penalty.

Petitioners' remedy for incompetent accounting services is not through the Tax Commission, but is against the incompetent party.

DATED this 11 day of March, 1987.

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

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