BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88 1438
UTAH STATE TAX COMMISSION, : Acct. No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission for reconsideration of Commission decision denying a request for waiver of a penalty 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 the Petitioner's file served as the evidentiary basis for this decision.
Petitioner, XXXXX, failed to file a timely personal income tax return for the year XXXXX and was assessed late filing and payment penalties. Petitioner asserts that she was inadequately informed by the Commission of penalties imposed for late filing and payment. Petitioner refers to the XXXXX tax instruction booklet, page 3, that states the following:
"If your return is not timely filed it will be subject to penalty and interest."
Petitioner argues that since the amount of the penalty is not mentioned, it is unjust to assess such a high penalty.
Petitioner overlooked the information located on page 7 of the XXXXX tax booklet which states the following:
"If you fail to file your income tax return or pay the tax by the prescribed due date you must include a penalty equal to the greater of $25.00 or 5% of the tax for each month late not to exceed 25% of the tax due. . . . [and] you must include interest at the rate of 12% per annum from the due date of the return. . . . Deficiency assessments may be subject to a penalty which is the greater of $50.00 or 5% of the total amount of the deficiency if the deficiency is due to negligence. . . ."
In XXXXX, the legislature changed the penalty structure to reflect the minimum $$$$$ late payment penalty and minimum $$$$$ late filing penalty assessed Petitioner's account. Unfortunately, the tax instruction booklets were printed before the legislative changes were made. Because Petitioner understandably relied upon information in the booklet, it is only just that the penalty as set forth in the booklet should be assessed Petitioner's account. Petitioner should have been assessed a $$$$$ late filing penalty and a $$$$$ late payment penalty.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that the penalty assessed Petitioner's account be reduced from $$$$$ to $$$$$.
DATE this 1 day of November, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis