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