BEFORE THE UTAH STATE TAX COMMISSION
In Re: : INFORMAL DECISION
XXXXX ) Appeal No. 91-0353
: 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.
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.
R. H. Hansen Roger O. Tew