BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0615
UTAH STATE TAX COMMISSION, : Acct. No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission for reconsideration of a Commission decision denying a request for a waiver of penalty and interest assessments on Petitioner's XXXXX income tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b), no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.
Petitioner filed a timely personal income tax return for XXXXX, postmarked XXXXX but failed to remit the tax due as reported on the return. Petitioner remitted the tax due to the Commission XXXXX. Petitioner asserts that he did not know at the time of filing how much tax was due but promptly paid the tax due upon receipt of a notice and demand letter dated XXXXX.
Petitioner signed the return showing a tax due amount of $$$$$; therefore, Petitioner should have known of the tax due. Utah Code Ann. §59-1-401(2)(a) provides that a penalty of the greater of $$$$$ or ten percent of the tax due shall be assessed for failure to pay any tax as reported on a filed return. Section 59-1-401(1)(b) provides that a penalty of the greater of $$$$$ or ten percent of the tax due will be assessed for failure to pay the tax due within 90 days of the due date. Petitioner failed both to remit the tax as reported on the return and to remit the tax within the 90 day grace period; therefore, the penalty assessments are valid. Utah Code Ann. §59-10-537(1) provides that interest shall be assessed at the rate of one percent whether or not any extension of time for payment was granted; therefore, all interest assessments are valid.
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 and interest be denied.
DATED this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION
G. Blaine Davis