91-0980 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-0980

: Account No. XXXXX

_____________________________

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 by telephone 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 penalty and interest on individual income tax.

2. The period in question is XXXXX.

3. Petitioner prepaid $$$$$ toward his XXXXX state income tax liability during XXXXX.

4. Petitioner filed an application for automatic four month extension of the XXXXX filing deadline, thereby extending his filing deadline to XXXXX. On XXXXX, he filed a request with the IRS for an additional two month extension, to XXXXX, which was granted. XXXXX, Petitioner filed both his state and federal returns, accompanying his state return with payment of the remaining tax due.

5. Petitioner's state income tax liability for XXXXX was $$$$$.

CONCLUSIONS OF LAW

An extension of up to six months is allowed for filing returns, provided that payment is made by the regular filing deadline (April 15) of either 90% of the tax reported on the return when it is filed or the total tax paid for the previous year. (Utah Code Ann. §59-10-516)

The Commission recognizes federal extensions for filing state individual income tax returns. (Utah State Tax Commission Administrative RuleR865-9I-23.)

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 record in this matter establishes that Petitioner properly obtained extension of his XXXXX filing deadline until XXXXX. The record further establishes that Petitioner filed his income tax return on XXXXX, and paid the remaining tax due at that time. Finally, as of XXXXX, Petitioner had already paid more toward his XXXXX tax liability than his entire XXXXX tax liability. The Petitioner therefore met the requirements for extension of his XXXXX filing deadline. Under such circumstances, no penalty may be imposed.

Based upon the foregoing, the Commission finds that sufficient cause has been shown to waive penalty associated with Petitioner's XXXXX individual income tax liability. Interest is not waived, but will be recomputed in accordance with this decision. It is so ordered.

DATED this 12th day of November, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner