89-1622 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner :

: FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 89-1622

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Administrative Procedures Act for a formal telephone hearing on XXXXX, before Joseph G. Linford, Presiding Officer. No one representing either the Petitioner or the Respondent appeared, although notice of the hearing was mailed to the Petitioner on XXXXX. This decision is, therefore, based upon the documents contained in the file.

After reviewing the evidence and arguments of the parties in the record and the recommendation of the presiding officer, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is individual income tax.

2. The period in question is tax year XXXXX.

3. Petitioner's tax preparer did not inform Petitioner he was obligated to pay Utah income tax for the period in question. Therefore, Petitioner was not aware Utah taxes were due. Petitioner received a tax return from the state of California but none from Utah and had not carefully reviewed the tax papers.

4. Petitioner has now paid the tax and interest amounts and requests a waiver of the penalty and interest charged.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be imposed upon late payment and filing of taxes.

2. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon reasonable cause shown, waive or reduce penalties and interest assessed under the above statutes.

3. Such reasonable cause has not been shown in this case. It is evident the Petitioner did not intend to fail to pay taxes due, but Petitioner was also negligent in not following up with the tax preparer and in obtaining whatever other information Petitioner needed in order to know of and to file and pay the Utah taxes. Negligence on the part of a taxpayer, however innocent, is not sufficient reasonable cause for waiver of penalties and interest.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petitioner's request for waiver of penalty and interest be denied.

DATED this 4th day of April, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner