BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, )
v. ) INFORMAL DECISION
COLLECTION
DIVISION OF THE ) Appeal No. 87-0420
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
) Acct. No.
XXXXX
Respondent. )
_____________________________________
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
Chairman Commission
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner