BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-0628
UTAH STATE TAX COMMISSION, : Acct.
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission for reconsideration of a
Commission decision denying a request for waiver of penalty and interest
assessments on Petitioners' XXXXX and XXXXX personal income tax returns. 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.
Income Tax Return
Petitioners,
XXXXX, filed a timely income tax refund return for XXXXX. However, a XXXXX audit showed that
Petitioners had failed to report all income earned during XXXXX. An additional $$$$$ was earned from XXXXX. After adding the additional wages to
Petitioners' taxable income, it was determined that an additional tax of $$$$$
was due. A late payment penalty and
interest were assessed Petitioners' account.
Petitioners agreed to pay the tax but noted that no withholding credits
were made for the additional wages earned at XXXXX. Petitioners requested that the Commission credit Petitioners'
account and notify them of the correct amount due.
A
review of the Commission files shows that XXXXX did not have an active withholding
account in XXXXX. Petitioners were
informed that XXXXX had not remitted any tax for credit to Petitioners'
account. Petitioners assert that state
taxes were, in fact, withheld from wages earned at XXXXX, but offered no
evidence to support this claim.
Petitioners also assert that they were unable to determine how much
money they earned from XXXXX during XXXXX and were therefore unable to report
the proper amount on their return. Petitioners request that the late penalty be
waived since the error was due to circumstances beyond their control.
Income Tax return
Petitioners
filed a timely extended return in XXXXX but failed to include with the
extension request an amount equal to XXXXX percent of the tax due. Petitioners were
assessed a two percent underpayment penalty and interest. Petitioners assert
that the Commission has erroneously credited payments made to meet XXXXX
liabilities to XXXXX account.
FINDINGS
Income Tax
Utah
Code Ann. §59-10-501 provides that "every person liable for. . . [income
tax], must keep. . . records, render. . . statements, make. . . returns, and
comply with. . . [Commission rules.]" and must make these records
available to the Commission to show whether or not the person is liable for the
tax. It is the taxpayer's ultimate
responsibility to track and report all wages upon which taxes are due. Failure to do so subjects taxpayers to
liability for penalty assessments.
Although Petitioners assert that there should be a withholding credit on
the additional wages, Tax Commission records indicate no withholding was
remitted for credit to Petitioners' account for that period. Petitioners had
the burden of proof to show the credit was due but failed to meet that burden. Utah Admin. R. R861-07A-l(G).
It
should be noted that any claim Petitioners may have against their employer for
money withheld but not remitted must be taken up with the employer. The
Commission has no authority to involve itself in such matters.
Income Tax
Utah
Code Ann. §59-10-516 states that a payment equaling 80 percent of the tax due
or 100 percent of the tax paid for the previous year must accompany an
extension request. Failure to remit
this amount subjects the taxpayer to liability for a two percent underpayment
penalty. Utah Code Ann. §59-1-401. Thus, the $$$$$ underpayment penalty
assessed Petitioners' account was valid and appropriate.
Utah
Code Ann. §59-10-537 stipulates that interest must be paid on tax due
"whether or not an extension was requested." Therefore, the $$$$$ interest assessed
Petitioners' account was also valid and appropriate.
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 assessments be denied.
DATED
this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION
G. Blaine
Davis
Commissioner