91-1260 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

XXXXX :

: FINDINGS OF FACT,

Petitioners, : CONCLUSIONS OF LAW,

: AND FINAL DECISION v. :

COLLECTIONS DIVISION OF THE : Appeal No. 91-1260

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

____________________________

STATEMENT OF CASE

A formal hearing was held in this matter on XXXXX by telephone. Lisa L. Olpin, Presiding Officer, heard this case for and on behalf of the Utah State Tax Commission. Petitioners represented themselves.

Based on the evidence and testimony presented at the hearing, the Tax Commission makes its findings of fact:

FINDINGS OF FACT

1. The tax in question is personal income tax.

2. The period in question is the year XXXXX.

3. Petitioner XXXXX, XXXXX, receives XXXXX for his total and permanent XXXXX.

4. On his XXXXX personal income tax return, Petitioner claimed a $$$$$ retirement deduction.

5. This $$$$$ deduction was disallowed by the Tax Commission because Petitioner's social security payments are not taxable.

6. Petitioner was charged an additional $$$$$ in taxes and a $$$$$ penalty plus interest. This penalty was later waived.

CONCLUSIONS OF LAW

A $4,800 retirement deduction is entitled to those persons under age 65 who received retirement income from pensions and annuities paid from an annuity contract purchased by an employer under sections 404 and 408 of the Internal Revenue Code or paid to the employee involved or the surviving spouse by the United States, a state, or a political subdivision thereof, or the District of Columbia. (Utah Code Ann. §59-10-114(2)(d).)

DECISION AND ORDER

Petitioner argues that his physical condition has forced him into an early retirement and that he should qualify for the $$$$$ deduction referred to above. In the alternative, Petitioner feels that money he receives on disability should not be taxed under the circumstances.

The applicable Utah Tax Code provision found at Section 59-10-114(2)(d) is concise and restrictive as to the income that does qualify as "retirement income" for purposes of a XXXXX deduction. The XXXXX Petitioner receives is not an enumerated source of retirement income according to the statute.

Based upon the foregoing, the Tax Commission finds that Petitioner is not entitled to the $$$$$ retirement deduction for the year XXXXX on Petitioner's personal income taxes. The penalty was previously waived; however, the interest remains. It is so ordered.

DATED this 2nd day of October, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner