BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-1077
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 penalty and interest on individual income tax account No. XXXXX for the tax year XXXXX. Petitioner requested that the Commission render a decision based on the materials in the file. Therefore, no hearing was held.
Petitioner stated that she had a federal extension and that she sent a copy of the federal extension with the state tax return because the XXXXX accountant which Petitioner was using did not have Utah state tax forms available.
Petitioner stated that the extension was necessary because her former husband had her files and it was difficult for Petitioner to obtain them. Petitioner questioned the imposition of a $$$$$ penalty of a tax amount of $$$$$.
Petitioner did not properly file an extension request with the Utah State Tax Commission. A copy of a federal extension is not sufficient.
Tax Commission records indicate that the tax for the year XXXXX was paid on XXXXX. This was beyond the time permitted by an extension request even if an extension had properly been filed.
Respondent properly assessed $$$$$ in penalty pursuant to Utah Code Ann. §59-14A-89 (1953) renumbered to Section 59-10-539). Subsection (a) of §59-14A-89 authorizes a late filing penalty of 5% per month of the amount of the tax up to a maximum of 25%. Petitioner's return was at least five months late. Therefore, Respondent properly assessed a 25% penalty of $$$$$.
Subsection (b) authorizes the greater of $50.00 or 5% of the deficiency for failure to pay the tax, $50.00 is greater than 5% of $$$$$, $50.00 plus $$$$$ amounts to $$$$$.
Respondent properly assessed interest in this matter pursuant to section 59-14A-89 (a) renumbered to Section 59-10-537. Interest is assessed regardless of whether or not an extension request has properly been filed since the Tax Commission is denied the use of the money if a tax is not paid by the statutory due date.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that the Petitioner's request for waiver of penally and interest on individual income tax account, No. XXXXX for the tax year XXXXX is denied.
The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 11 day of December, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis