BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-0704
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 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.
FINDINGS
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
Commissioner