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