90-0009 - Income

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

XXXXX, )

:

Petitioner, )

: INFORMAL DECISION

)

v. :

COLLECTION DIVISION OF THE ) Appeal No. 90-0009

UTAH STATE TAX COMMISSION :

) Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission requesting waiver of penalty and interest assessment on Petitioner's income tax liability for XXXXX. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

The penalty which was assessed in this case was due to an initial determination by employees of the Tax Commission that a copy of the federal extension was not filed with Petitioner's return and, therefore, the return was considered not timely filed. Petitioner asserts, however, that the federal extension was filed with the state tax return and that all of the Petitioner's taxes, plus interest, was paid well before the federal extension expired. A check of the records of the Tax Commission substantiates these statements by the Petitioner.

FINDINGS

Utah Code Ann. §§59-1-401 and 59-1-402 provide that penalty and interest shall be assessed for the late filing and payment of taxes. Utah Code Ann. §59-1-401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalty or interest assessed under the above statutes.

Such reasonable cause has been shown for waiver of the penalty in this case because the federal extension was filed in a timely manner, as indicated above, and the penalty was assessed in error.

DECISION AND ORDER

Based upon the foregoing facts, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and associated interest is granted. Petitioner's account for the XXXXX tax year should, therefore, be reduced to a zero balance.

DATED this 8 day of August, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner