BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-0906
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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 a $$$$$ non-filing penalty for each of the tax years XXXXX. A telephone conference hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner. Petitioner stated that he is a limited partner in an oil and gas partnership and that he did not receive notice that he had to file a Utah partnership tax return until XXXXX. Petitioner stated that the partnership prepared federal income tax returns on Form 1065 and distributed the proper R-1's to each limited partner. Since the partnership did not prepare any state partnership tax returns, Petitioner assumed that all the wells were located in XXXXX, or some other state which did not have income taxes. Petitioner stated that he had no way of knowing that returns were due to Utah and requested a waiver of the penalties for failure to file. Petitioner stated that the partnership was negligent, in that the penalty should be assessed against the partnership.
Petitioner had the burden of proof to establish that the penalty was assessed in error. Petitioner failed to meet this burden of proof. Respondent properly assessed a $$$$$ penalty for each tax year in question pursuant to Utah Code Ann. §59-14A-92(1) (1953) (new Section 59-1-401):
Every person who, without fraudulent intent, fails to make, render, sign, or verify any return, or to supply any information within the time required by or under the provisions of this chapter, is liable to a penalty of $$$$$ to be imposed, assessed, and collected by the tax commission in the same manner as is provided by this chapter with regard to delinquent taxes.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for the tax years XXXXX, be denied. The assessment of a $$$$$ non-filing penalty for each of the tax years by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 1 September, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew