BEFORE THE UTAH STATE TAX
COMMISSION
________________________________
In Re: )
: INFORMAL
DECISION
XXXXX )
: Appeal No.
90-1120
: Account
No. XXXXX
________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
proceedings. No hearing was requested,
therefore, this decision is based upon information contained in the Tax
Commission's file.
FINDINGS
The
issue before the Commission is Petitioners' request for waiver of penalty
associated with their XXXXX income tax liability.
On
XXXXX, the Petitioners requested an extension for filing their XXXXX individual
income tax return. In their application
for extension, they estimated their total tax liability to be $$$$$ and they
enclosed payment of $$$$$, which was 80% of the estimated liability. On XXXXX, the Petitioners filed their XXXXX
tax return, thereby establishing an actual tax liability of $$$$$. They submitted payment of $$$$$ with the
return. The Petitioners' tax liability
for XXXXX was $$$$$.
Utah
law permits a six month extension for filing income tax returns if the taxpayer
pays either 80% of his tax liability, or the amount of the prior year's tax
liability. Because the Petitioners
failed to pay either of the foregoing amounts, an extension penalty of $$$$$
was imposed when their return was filed.
The
payment of $$$$$ which accompanied the return was applied first to penalty and
interest, leaving a tax liability due of $$$$$. An additional penalty of $$$$$ was then assessed for Petitioners'
failure to pay their entire tax liability.
DECISION AND ORDER
Because
the Petitioners failed to meet the conditions for obtaining an extension of
their filing deadline, a penalty of $$$$$, (2% per month of the unpaid amount)
has been imposed. The Petitioners have
shown no basis for reducing or waiving that penalty. However, the Tax Commission finds reasonable cause to waive the
additional penalty of $$$$$, since an extension penalty has already been
imposed. The Tax Commission therefore
reduces the penalty imposed against the Petitioners with respect to their XXXXX
income tax liability from $$$$$ to $$$$$.
Interest is not waived. It is so
ordered.
DATED
this 9th day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner