BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0702
: Account
No. XXXXX
_____________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal telephone hearing
XXXXX. Joseph G. Linford, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX CPA.
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. When Petitioners filed their request for
extension for the year in question, they submitted no prepayment with that
extension. This is because Petitioners
had no liability for the previous tax year, and Petitioners anticipated no tax
liability for the year in question. The
reason Petitioners anticipated no tax liability for the year in question is
because, based upon advise from their accountant, the taxpayers were under the
impression that their fuel tax credit would be sufficient to cover all of their
liability remaining at the time of filing for the year in question, so that no
further tax was due. When Petitioners filed their tax return, approximately one
month after filing the extension, Petitioners discovered that this was not the
case.
CONCLUSIONS OF LAW
1. 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).)
2.
Utah Code Ann. §§59-10-516 and59-10-522 and Utah Administrative RulesR865-9I-23
and R865-9I-25 provide that extensions are valid upon the payment with the
extension of 90% of the current year's tax liability of 100% of the previous
tax year's liability.
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with Petitioners'
income tax for the tax year XXXXX.
Interest which accrued before the filing of Petitioners' tax return is
not waived. Interest accruing after the
filing of Petitioners' tax return, if any, is waived. It is so ordered.
DATED
this 28th day of June, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner