BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: : INFORMAL DECISION
XXXXX ) Appeal No. 91-0353
: Account No.
XXXXX
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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
Petitioner
requests a waiver of the penalty assessment on his XXXXX individual income
tax. Petitioner states that when he
completed his XXXXX income tax return, he requested the $$$$$ refund for that
year to be applied to the taxes for the year in question, XXXXX. Petitioner so indicated this request by
marking the box on line 28 of his XXXXX state income tax return which indicates
that the taxpayer wants the refund applied to the next year's tax. Petitioner, however, asserts that a mistake
was made by the Tax Commission, the funds were not applied to the XXXXX taxes,
and a refund check was issued to Petitioner which he cashed.
However,
it appears that these are not the circumstances which led to the assessment of
the penalty in this case for the XXXXX tax year. Petitioner's total tax liability was $$$$$. Of this, $$$$$ had been previously withheld
from Petitioner's wages. Even if the
refund from the prior year is added to the amount already withheld, it only
equals $$$$$. Utah law requires that
when an extension is filed, a payment of at least 90% of the estimated tax due
shall be paid with the return. Utah
Code Ann. §59-10-516 and Tax Commission RuleR865-9I-23. Petitioner filed an extension for XXXXX with
a $$$$$ prepayment, which was insufficient to equal 90% of the remaining tax
liability due after subtracting the amounts withheld from Petitioner's wages,
and even after subtracting the $$$$$ which Petitioner requested to be applied
to the XXXXX taxes. This is the reason the $$$$$ penalty was assessed. Petitioner has given no reasonable cause as
to why this penalty should be waived.
DECISION AND ORDER
The
Tax Commission finds sufficient cause does not exist to waive the penalty
associated with the income tax for the tax year XXXXX. It is so ordered.
DATED
this 15 day of May, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner