BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-1099
STATE TAX
COMMISSION OF UTAH, ) Account 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. 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.
FINDINGS
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.
ABSENT
R. H. Hansen Roger
O. Tew