BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0704
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 waiver of penalty and interest assessments on Petitioners' 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, XXXXX, filed a timely extension request but failed to remit 80 percent of the tax due, as determined by the return filed XXXXX. Petitioner was assessed late filing and underpayment penalties and interest.
Utah Code Ann. §59-10-516(b) provides that a payment of at least 80 percent of the total tax reported on the income tax return must accompany the extension request. Utah Code Ann. §59-1-401(2)(b) provides that a penalty of two percent of the unpaid tax shall be assessed until payment is received. Because Petitioner failed to remit at least 80 percent of the tax due with his extension request, an underpayment penalty of $$$$$ was assessed and is valid.
Utah Code Ann. §59-10-537(1) provides that interest shall be assessed from the date due until time of payment, whether or not an extension of time for payment was granted. Therefore, all interest assessments on Petitioner's XXXXX income tax return are valid.
Utah Code Ann. §59-1-401(1)(b) provides that a penalty of the greater of $$$$$ or ten percent of the tax due shall be assessed if the tax is not paid within 90 days of the due date. Because Petitioner filed a timely request for extension and filed within that extension time period, Petitioner is not liable 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 late payment penalty be granted; the request for a waiver of underpayment penalty and interest is denied.
DATED this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION
G. Blaine Davis