BEFORE THE UTAH STATE TAX COMMISSION
Petitioners, : FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 90-0076
UTAH STATE TAX COMMISSION, :
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is income tax.
2. The periods in question are XXXXX.
3. The Petitioners moved to Utah in XXXXX from XXXXX.
4. XXXXX works in XXXXX at the XXXXX and also lives there during the days that he works. On his days off and on holidays, he returns to his home in Utah. Utah is the place of domicile for the Petitioners.
5. When the Petitioners first moved to Utah, they obtained a tax booklet. After reading the booklet, they were under the impression that they were not residents of Utah for income tax purposes because XXXXX did not spend more than 183 days within the state.
6. In XXXXX the Petitioners received notice from the Commission that the returns had not been filed and that they were obligated to do so. The Petitioners immediately obtained a loan in order to pay the taxes in full.
7. As a result of the late payment and filing of the taxes due, the Petitioners were assessed a penalty in the amount of $$$$$$, which represented a ten percent late filing penalty and a ten percent late payment penalty. The Petitioners were also assessed interest calculated at the statutory rate, which, as of XXXXX, amounted to $$$$$.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a reduction of the penalty associated with the XXXXX income tax years, to an amount of $$$$$. Sufficient cause has not been shown, however, to reduce or waive the interest associated with those years. It is so ordered.
DATED this 19 day of October, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis