91-1348 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

XXXXX :

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

:

OPERATIONS DIVISION OF THE : Appeal No. 91-1348

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

:

Respondent. :

________________________________

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. Petitioner XXXXX appeared on his own behalf. Present and representing the Respondent was XXXXX, Assistant Utah Attorney General.

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. Petitioner filed a Utah Resident Long Form individual income tax return for XXXXX. In completing the form he reported federal adjusted gross income of $$$$$. He subtracted deductions of $$$$$, thereby arriving at a Utah taxable income of minus $$$$$. Petitioner took the foregoing negative number as though it were "income" and applied the income tax rates set forth in the XXXXX Booklet L, "Individual Income Tax Instructions". Petitioner arrived at an income tax liability of minus $$$$$. He then submitted his income tax return claiming a refund of $$$$$.

4. No Utah income tax was withheld from Petitioner's income during XXXXX.

5. Respondent denied Petitioner's request for refund. Petitioner then filed a timely appeal of the denial to the Commission.

CONCLUSIONS OF LAW

In cases where there has been an overpayment of any tax imposed by Utah's Individual income tax act, the amount of the overpayment is credited first to certain specified obligations of the taxpayer, not material to this appeal. Any remaining balance must be refunded to the taxpayer. (Utah Code Ann.59-10-529(1) and (6).

DECISION AND ORDER

Utah's Individual Income Tax Act requires the Commission to refund any income taxes collected from, or on behalf of, a taxpayer in excess of the taxpayer's income tax liability. In the present case, while Petitioner had no tax liability, he also had paid no taxes. Consequently he was not entitled to any refund.

The Commission notes that the XXXXX Utah Income Tax Forms and Instructions failed to make the foregoing point clear. That error has been corrected in subsequent instructions.

Based on the foregoing, Petitioner's request for an income tax refund for the XXXXX tax year is denied. It is so ordered.

DATED this 7th 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