89-1067 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

:

: Appeal No. 89-1067

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH ) Acct No. XXXXX

Respondent :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings. Paul F. Iwasaki, Presiding Officer, heard the case for and in behalf of the Tax Commission. Present and representing the Petitioners were XXXXX, XXXXX, and XXXXX.

Based upon the evidence presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is income tax.

2. The period in question is XXXXX.

3. The Petitioners timely filed and received an extension for filing their XXXXX income tax return. At that time, $$$$$ in estimated tax was remitted.

4. The Petitioners' income tax liability for XXXXX was $$$$$. Of that amount, $$$$$ had been withheld from their wages during that year. The amount of withholding combined with the $$$$$ the Petitioners paid at the time their first request for extension was made left a balance of $$$$$.

5. Prior to the expiration of the first extension, the Petitioners requested a second extension within which to file their $$$$$ return. The basis for that request was they needed additional time to gather information regarding their ownership in two partnerships and that such information was necessary to properly prepare their return. At that time Petitioners requested an extension to XXXXX within which to file their return.

6. Petitioners filed their return on XXXXX, so the return was 16 days late.

7. A penalty of $$$$$ was assessed for the late filing and payment of the XXXXX return.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause and upon making a record of its decision. (Utah Code Ann. §59-1-401(8)).

DECISION AND ORDER

Based on the foregoing, the Tax Commission does not find sufficient cause to waive the late filing penalty but finds sufficient cause to waive the late payment penalty associated with the XXXXX income tax year. The penalty is therefore reduced to $$$$$, and the interest is to be adjusted. It is so ordered.

DATED this 29th day of December, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner