BEFORE THE UTAH STATE TAX COMMISSION
In Re: : INFORMAL DECISION
XXXXX ) Appeal No. 91-0910
: 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.
The Petitioner timely filed an extension request for his XXXXX individual income tax return, but did not pay any amount with the request for extension. Petitioner thereafter timely filed his income tax return within the extension period, and paid the amount of $$$$$ for the income taxes which were due.
For XXXXX, the Petitioner did not owe any state income taxes, and for XXXXX, the Petitioner's income taxes were $$$$$ for the State of Utah.
The Petitioner's accountant represents that prior to the filing deadline he made numerous attempts to contact the Petitioner, but was unable to make contact prior to the time when he filed the extension request. Said accountant also represents that the Petitioner was in poor health and was not aware that he would owe any income tax prior to the time the tax return was completed in XXXXX.
Section 59-1-401 imposes a penalty when the taxpayer has failed to pay at least 80% of the total tax reported on the tax return with the extension, or fails to pay the total amount of tax assessed on the tax return for the previous tax period. In this case, if the taxpayer had paid the sum of $$$$$, the amount of the prior year's income tax, there would have been no penalty imposed. The penalty imposed was in the amount of $$$$$, plus interest.
The Internal Revenue Service also imposed a penalty, but has waived the penalty which assessed.
DECISION AND ORDER
Based upon the poor health of the Petitioner and upon the minimal amount of tax which had been owed for prior years, the Commission finds that reasonable cause exists to waive the penalty.
The petition for waiver of the penalty is thereby granted, but the petition for waiver of the interest is denied. 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
Joe B. Pacheco S. Blaine Willes