BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-1361
_____________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were
XXXXX and 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 personal income tax.
2. The period in question is the year XXXXX.
3. In XXXXX, Petitioners filed for an extension
of their XXXXX personal income tax return.
On XXXXX, Petitioners filed and paid $$$$$ in taxes. They were assessed a penalty in the amount
of $$$$$ for failing to pay 90% of tax due on the return or 100% of the
previous year's tax amount when requesting the original extension. They were also assessed interest in the
amount of $$$$$.
4. Petitioners are appealing the penalty
assessment only.
5. Petitioners moved from XXXXX to Utah in
XXXXX.
6. In XXXXX, Petitioners contacted the Tax
Commission and spoke with XXXXX. XXXXX
told them that they did not have to make a payment with their extension because
they had not filed a return the previous year in Utah.
7. Petitioners contacted XXXXX, a Utah tax
preparer, after they incurred the penalty and interest assessments for XXXXX
for clarification of the tax laws.
XXXXX testified that the Petitioner felt they had complied with the
statutes because of XXXXX statements.
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.
§63-46b-13(1),63-46b-14(2)(a).
DECISION AND ORDER
Petitioner
contacted the Tax Commission to learn how to handle their tax obligations prior
to filing their extension request. The
Tax Commission furnished erroneous information on which Petitioners relied to
their detriment.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with the XXXXX
personal income tax year. It is so
ordered.
DATED
this 22nd day of January, 1992.
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