90-0134 - Fiduciary Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 90-0134

UTAH STATE TAX COMMISSION, : Account No. XXXXX

Respondent. :

_____________________________________

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 were XXXXX.

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 fiduciary tax.

2. The periods in question are the tax years XXXXX.

3. The trust return filed for XXXXX was filed on XXXXX, after an extension had been granted.

4. A penalty was assessed for the XXXXX return because at the time the extension was applied for, payment of the estimated tax was not remitted with the application. A penalty of $$$$$ was imposed.

5. For the tax year XXXXX, the return was filed and paid late on XXXXX. No extension was filed for that year. As a result, a penalty in the amount of $$$$$ was imposed on the tax due of $$$$$.

6. The Petitioner, XXXXX, testified that he had received notices from the Commission indicating that penalty had been imposed and additional amounts were due, however, no explanation as to the basis for the penalties was provided. Petitioner further testified that he had made repeated contacts to the Commission for an explanation, however, received none until XXXXX.

7. It was the Petitioner's position that because of the lack of explanations given to him, the imposition of the penalties for the years in question would not be appropriate. The Petitioner did not request a waiver for the interest associated with those years.

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

Although the Tax Commission could have perhaps been more responsive to the inquiries made by the Petitioner, that lack of response did not contribute to the Petitioner's failure to make the extension payment nor failure to timely file and pay the tax due.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the XXXXX and XXXXX income tax 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

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner