BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE ) Appeal No. 87-0420
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
) Acct. No. XXXXX
STATEMENT OF CASE
An Informal Hearing was scheduled for XXXXX. Petitioners did not appear at the scheduled hearing and did not indicate an intent to request a hearing based on the file. However, since Petitioners reside out of state, the Commission will make a decision based on the materials in the file. Petitioners request a waiver of the penalties and interest assessed against them for the late filing of their XXXXX individual income tax return. Petitioners paid their individual income tax due of $$$$$ by check dated XXXXX. They had filed with the Internal Revenue Service Form XXXXX which is an application for an automatic extension of time to file their United States individual income tax return. On XXXXX, Petitioners notified Respondent their belief that the assessment of the late filing penalties and interest was incorrect because they had filed the United States Form XXXXX. On XXXXX, Petitioners requested an explanation of the late filing penalties and interest and were sent a form letter which indicated that the Utah State Tax Commission has its own automatic extension form, and because of that the Tax Commission does not honor the federal extension form. Therefore, Respondent denied Petitioners' request for waiver of penalties and interest. On XXXXX, XXXXX, Petitioners' representative, requested a redetermination of Respondent's denial of Petitioners' request for waiver of penalties and interest and expressed indignation that Utah does not accept the federal extension for state extension purposes. XXXXX indicated that even if he had known that the federal extension is not accepted in Utah, he did not have a Utah application for the automatic extension available. He indicated that Petitioners' intent was to timely file and pay all taxes when they were due and that Respondent's decision to deny Petitioners' request for waiver of penalty and interest was one of opportunistic greed. He indicated that he was under the impression that Utah was a Christian state, but that Respondent's decision to deny the request for waiver of penalty and interest exemplified greed.
DECISION AND ORDER
In their XXXXX, and XXXXX, letters Petitioners indicated that when they filed their Utah return they attached a copy of the United States Form XXXXX which is an application for automatic extension of time. Even if Utah accepted Form XXXXX as an application for automatic extension of time in which to file the Utah tax return, Petitioners did not follow the procedure Utah required in applying for an extension of time. Utah law requires taxpayers to file by April 15th of each year either their individual income tax return or Utah Form TC-546 applying for an automatic extension of time in which to file. Taxpayers are imputed with knowledge of the law. If Petitioners desire to maintain such contacts with the State of Utah that they will be liable for a tax on income earned in Utah, then they must apprise themselves of the Utah income tax laws. Respondent's decision to deny Petitioners' request for waiver of penalties and interest is not a decision based on greed but is a statutory requirement. The Utah State Tax Commission has discretion to waive penalties or interest if they feel that good cause exists for a taxpayer's late filing of returns; however, the Utah State Tax Commission declines in this case to waive any penalties and interest. Petitioners were negligent in not apprising themselves of the Utah law and following the proper procedures.
DATED this 7 day of August, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis