BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-2064
: 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 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 income tax.
2.
The periods in question are XXXXX and XXXXX.
3.
For the XXXXX income tax year the Petitioners had hired an accountant to
prepare their XXXXX income tax return.
That individual did not file their returns until XXXXX. The delay was believed to be due to the
illness of the tax preparer. The exact
nature of that illness was unknown.
4.
As a result of the late payment and filing of the XXXXX return, the Petitioners
were assessed a penalty in the amount of $$$$$.
5.
For the XXXXX income tax year, the Petitioners hired another individual to
prepare their income tax return.
6.
It was believed that an extension had been filed on XXXXX and a prepayment of
$$$$$ was credited to the Petitioners' account. Records of the Commission, however, show that although the
prepayment was received, the extension itself was not.
7.
The Petitioners' XXXXX tax return was filed on XXXXX. When that return was
filed, the preparer listed $$$$$ as credit for the income tax that was prepaid
rather than the $$$$$ which was actually paid.
That error led to an underpayment of tax in the amount of $$$$$.
8.
As a result, the Petitioners were assessed a penalty in the amount of $$$$$ for
the failure to timely file and pay the taxes due.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that for the income tax year
XXXXX, sufficient cause has not been shown which would justify a waiver of the
penalty associated with that year.
The
Tax Commission further finds that for the tax year XXXXX, sufficient cause has
been shown which would justify a waiver of the penalty to an amount of
$$$$$. It is so ordered.
DATED
this 13 day of March, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner