BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
v. :
COLLECTION
DIVISION OF THE : Appeal No. 87-0037
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 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 the
Petitioner. Petitioner presented
evidence that he timely filed applications for automatic extensions of time to
file both U.S. and Utah individual income tax returns. Petitioner requests a waiver of the penalty
and interest.
FINDINGS
Petitioner
properly filed an extension request pursuant to Utah Code Ann. 59-14A-62
(1953). The extension allowed
Petitioner six additional months in which to file the return for XXXXX. On XXXXX, Petitioner paid the remainder of
the tax due of $$$$$ but did not pay the associated interest. Respondent properly assessed interest on
Petitioner's account pursuant to
59-14A-87. The Tax Commission
was denied the use of the money during the extension period. No penalty was initially assessed and would
not have been assessed had Petitioner paid the entire balance due within the
six month period. However, since
Petitioner did not pay the associated interest, Respondent properly assessed a
penalty. Payments to the Tax Commission
are applied first to penalty, then to interest, then to tax. Since Petitioner did not pay the total
balance, the interest was credited first, leaving a portion of the tax past due
upon the expiration of the six month extension. Thereupon, a penalty was properly assessed.
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 XXXXX be denied. The assessment of
penalty and interest by the Collection Division of the Utah State Tax
Commission is hereby affirmed.
DATED
this 5 day of October , 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