BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0050
UTAH STATE TAX COMMISSION, : Acct. No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission for a reconsideration of a Commission decision denying a request for waiver of a penalty assessment of Petitioners' XXXXX income tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b), no hearing was held. A review of Petitioners' file served as the evidentiary basis for this decision.
Petitioners, XXXXX, failed to file a timely XXXXX income tax return and were assessed a late filing penalty. The Petitioners assert that, after contacting the Commission regarding their account, they were told that a late filing penalty would be waived if they remitted the tax due.
Utah Code Ann. §59-1-401(1)(b) provides that a penalty of the greater of $$$$$ or ten percent of the tax due shall be assessed for failure to file a timely tax due or no tax due return. Petitioners' failure to file a timely return subjected them to liability for the late filing penalty. Utah Code Ann. §59-1-401(8) authorizes the Commission to waive such penalties upon a showing of reasonable cause. Although receiving erroneous information from the Commission can be considered reasonable cause if reliance on that information causes the non-compliance, in Petitioners' case, the non-compliance occurred before the information was received. Petitioners should have known that failure to file a timely return would subject them to liability for a late filing penalty.
DECISION AND ORDER
Based on the foregoing facts, it is the decision and order of the Commission that the request for a waiver of penalty be denied.
DATED this 27 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION
G. Blaine Davis