BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-1099
STATE TAX COMMISSION OF UTAH, ) Account 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. An Informal 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, CPA, represented the Petitioner. Petitioner timely filed an extension for the period in question. Petitioner timely filed the return by XXXXX (the expiration of the period of extension) but did not pay the balance due until XXXXX. Petitioner stated that the penalty was improperly assessed in this matter. Utah Code Ann. §59-14A-89(a) (1953) states in part, "in case of failure to file an income tax return and pay the tax required on or before the date prescribed therefor (determined with regard to any extension of time for filing). . ." a penalty is added at the rate of 5% per month up to 25%. Petitioner stated that in order for the penalty to apply, both conditions in the first clause must be met. Since Petitioner did file the return in a timely manner, the penalty cannot be imposed since both required conditions for the imposition of a penalty have not been met. Petitioner requests a waiver of the penalty and the interest accrued since the return was filed.
A taxpayer is required to both timely file and timely pay the tax required to prevent the imposition of a penalty pursuant to Utah Code Ann. §59-14A-89(a) (1953). If a taxpayer fails to meet both conditions then a penalty is properly assessed. Since Petitioner failed to timely pay the tax required, Respondent properly assessed a penalty in this matter.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on individual income tax account, No. XXXXX for the tax year XXXXX be denied.
DATED this 5 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew