87-2021 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX

Petitioner, : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-2021

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

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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 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 Tax Commission. XXXXX represented themselves.

Petitioner stated that when he filed his amended tax returns for the tax years in question XXXXX was the agent who helped him. The tax for the three years amounted to $$$$$. The total as of XXXXX, including penalty and interest amounted to $$$$$. XXXXX told Petitioner that if he got two refusals from loan companies then Petitioner could get a payment plan from the state. According to Petitioner XXXXX supervisor told Petitioner that if Petitioner paid the tax in full by XXXXX, then the penalty and interest would be waived. The loan took longer than Petitioner had planned and was approved on XXXXX. Petitioner then paid the Tax Commission $$$$$ on XXXXX, the full amount of the tax. Petitioner stated that he had kept XXXXX advised as to the nature of the loan proceedings prior to the XXXXX deadline. The penalty was subsequently waived and Petitioner requests a waiver of the interest based on a good faith effort to comply with the agreement to pay the tax by XXXXX.

FINDINGS

Tax Commission agents do not have the authority to waive the penalty and interest. This is a decision which the Tax Commissioners must make. The agents may recommend a waiver of penalty and interest but that is all. If an agent or a supervisor told Petitioner that penalty and interest would be waived this was an error.

However it is apparent that a misunderstanding occurred. Petitioner made a good faith effort to pay the liability in full by XXXXX, even though the installment agreement only required an $$$$$ per month payment.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to grant Petitioner's request for waiver of the interest.

The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 23 day of May, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner