BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1127
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Joseph G. Linford, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioners was
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 individual income tax.
2.
The period in question is the tax year XXXXX.
3.
Petitioner, XXXXX, was temporarily employed in XXXXX for all of the year in
question. XXXXX's family remained at
their home in Utah. XXXXX visited on weekends and maintained his voting status
in Utah.
4.
When the time came to pay his income taxes for the year in question, XXXXX's
employer maintained that XXXXX should pay XXXXX taxes as a resident of
XXXXX. Petitioners and their accountant
were of the opinion that XXXXX was still a resident of Utah and should pay Utah
taxes. XXXXX's W-2 form, issued by his
employer, showed XXXXX as his state of residence.
5.
Because of the dispute with XXXXX's employer, an extension was timely filed by
Petitioners in Utah with a $$$$$ extension prepayment. When it was determined that XXXXX was a
resident of Utah and should pay Utah taxes, it was discovered that the
prepayment was inadequate to validate the extension. Petitioners did, however, pay all tax due with interest to the
date of payment before the extension deadline.
6.
Petitioners allege that because of this confusion they did not know the amount
of Utah taxes which they owed for the year in question and, therefore, did not
know the proper amount for the prepayment.
Penalty and interest was assessed because of the insufficient amount of
the prepayment. Petitioners now request
a waiver of the penalty and interest.
7.
Petitioners' account also has some history of penalty and interest assessment
for prior 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
A
showing of reasonable cause requires that the circumstances which lead to the
assessment of the penalty and interest be circumstances beyond the control of
the taxpayer which renders it impossible for the taxpayer to avoid the
difficulties which lead to the assessment of the penalty and interest. In this case, Petitioners could have avoided
these difficulties. Although there may
have been some confusion on Petitioners' part, it appears that Petitioners had
sufficient information to have made an accurate determination of the amount of
taxes they would be required to pay in Utah and could have made a more accurate
estimate for the prepayment. The disagreement
with XXXXX's employer did not preclude Petitioners from making a proper
prepayment.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the tax year XXXXX. It is so ordered.
DATED
this 15 day of February, 1991.
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