91-0534 - Income

 

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