91-0530 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

: INFORMAL DECISION

XXXXX ) Appeal No. 91-0530

: 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

Petitioners were assessed a $$$$$ penalty plus interest for failing to prepay 80% of their XXXXX income tax return.

A federal extension form was filed and a state extension prepayment was made in the amount of $$$$$. However, the total tax amount for XXXXX came to a total of $$$$$, so Petitioners had not complied with the 80% payment requirement.

However, the Petitioners did not owe any tax for the prior year of XXXXX. Therefore, Petitioners did comply with paying 100% of the prior year amount, and the penalty imposed hereon should not have been imposed and should now be waived.

DECISION AND ORDER

The Petitioners' request to waive the penalty herein is granted, but the request to waive interest is denied because the interest was charged on the additional tax money for the period that the Petitioners had possession of that tax money and the State was denied the use of that money. It is so ordered.

DATED this 19 day of July, 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