91-1361 - Income

 

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