91-1656 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-1656

: Account No. XXXXX

:

______________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing by telephone on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Representing the Petitioners 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 individual income tax.

2. The period in question is the year XXXXX.

3. Petitioner, XXXXX, is a XXXXX and is receiving federal retirement benefits.

4. For the year XXXXX, Petitioners received $$$$$ in federal retirement benefits.

5. Petitioners did not pay taxes on this amount.

6. Petitioners were later taxed on the difference between $$$$$ and $$$$$ (the exemption amount).

7. Petitioners were assessed $$$$$ plus interest for failing to pay taxes on time.

8. In the year XXXXX, the identical situation occurred where Petitioner received federal retirement benefits and did not pay taxes. The Tax Commission waived the penalties for that year.

9. Petitioners want the Tax Commission to waive the penalties again this year.

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. 59-1-401(8).)

A $7,500.00 personal retirement exemption is allowed taxpayers age 65 and older. (Utah Code Ann. 59-10-114(2)(e).)

DECISION AND ORDER

Petitioners' penalties associated with the year XXXXX were waived because of the taxpayer's apparent confusion over the taxability of retirement benefits. This year, however, Petitioners are not entitled to a waiver since they had prior knowledge of the status of these particular benefits for tax purposes.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the individual income tax for the year XXXXX. It is so ordered.

DATED this 13 day of February, 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