BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-1077
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 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 $$$$$ penalty of a tax amount of $$$$$.
FINDINGS
Petitioner
did not properly file an extension request with the Utah State Tax
Commission. A copy of a federal
extension is not sufficient.
Tax
Commission records indicate that the tax
for the year XXXXX was paid on XXXXX.
This was beyond the time permitted by an extension request even if an
extension had properly been filed.
Respondent
properly assessed $$$$$ in penalty pursuant to Utah Code Ann. §59-14A-89 (1953)
renumbered to Section 59-10-539).
Subsection (a) of §59-14A-89 authorizes a late filing penalty of 5% per
month of the amount of the tax up to a maximum of 25%. Petitioner's return was at least five months
late. Therefore, Respondent properly assessed a 25% penalty of $$$$$.
Subsection
(b) authorizes the greater of $50.00 or 5% of the deficiency for failure to pay
the tax, $50.00 is greater than 5% of $$$$$, $50.00 plus $$$$$ amounts to
$$$$$.
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner