BEFORE THE UTAH STATE TAX
COMMISSION
_________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0534
: 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 Petitioner 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 was untimely in filing his income
tax for the period in question because his accountant was waiting for a
schedule "K" to be submitted from Petitioner's bank regarding a
parcel of property which is owned by Petitioner. As soon as Petitioner received the schedule "K," he
completed his tax return, and filed the same along with payment of the tax
amount due.
4. Petitioner did not file an extension because
he thought that his liability from the schedule "K" would not be as
great as it was.
5. By letter dated XXXXX, the Tax Commission
granted a 50% reduction in the penalty from $$$$$ down to $$$$$.
6. Petitioner feels that the penalty assessment
is excessive and is an unwarranted burden upon Petitioner. Petitioner is of the opinion that the
interest is sufficient to reimburse the state for its losses and that an added
penalty is improper.
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
The
Tax Commission finds that sufficient consideration has already been given to
the circumstances of this case in the previous substantial reduction of the
penalty already granted. The law
requires that penalty be assessed when taxes are not filed and paid in a timely
manner due to a taxpayer's negligence.
Negligence has been shown in this case and the penalty was properly assessed.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a further waiver of the penalty associated with
Petitioner's individual income tax for the tax year XXXXX. Interest shall be
adjusted to account for the previous reduction in the penalty per the
Commission's XXXXX, letter. It is so
ordered.
DATED
this 27 day of June, 1991.
BY ORDER OF THE STATE TAX COMMISSION
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner