BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-0921
_______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioners 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 XXXXX.
3. The Petitioners' individual income tax
return was due on XXXXX. They submitted
a request for extension of the filing deadline until XXXXX, which extension
request was accompanied by prepayment toward their tax liability in the amount
of $$$$$.
4. The Petitioners filed their income tax
return on XXXXX thereby establishing a tax liability of $$$$$.
5. The sum of $$$$$ had been withheld from the
Petitioners' earnings during XXXXX.
6. The Petitioners submitted the balance of
their tax liability with their return on XXXXX.
7. Because the Petitioners failed to pay an
amount equal to either 90% of their actual tax liability for XXXXX or the
amount of their tax liability for the previous year, the Commission's staff
imposed an extension penalty of $$$$$ against them.
8. The Petitioners explain their delay in
filing and their failure to submit payment of at least 90% of the tax due on the
fact that they had not yet received necessary partnership returns. Without such returns, they were unable to
accurately determine the amount of their XXXXX tax liability. Penalties have been imposed against
Petitioners' income tax liability for several previous years.
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
An
extension of time for filing individual income tax returns is only available to
those tax payers who have either submitted payment of at least 90% of their tax
liability or submitted payment in an amount equal to their tax liability from
the previous year. While the Commission
recognizes that the Petitioners were unable to accurately estimate their XXXXX
tax liability until they received their partnership returns, the Petitioners
could have qualified for an extension by paying the amount of their prior year's
tax liability. Had they done so, no
penalty would have been imposed and any resulting overpayment of tax would have
been refunded to them or credited to their XXXXX tax liability.
Based
upon the foregoing and in light of the Petitioners' history of penalty
assessments, the Tax Commission finds that sufficient cause has not been shown
which would justify a waiver of the penalty associated with the Petitioners'
XXXXX individual income tax liability.
It is so ordered.
DATED
this 17th day of October, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner