BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
XXXXX &
XXXXX, )
:
Petitioners, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
) Appeal No.
92-1615
OPERATIONS
DIVISION OF THE :
UTAH STATE TAX
COMMISSION, )
: Account
No. XXXXX
_________________________________
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. Petitioners were present and represented
themselves. 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 the year XXXXX.
3. Petitioners are requesting a refund of their
XXXXX taxes in the amount of $$$$$. The
Operations Division, however, contends that Petitioners are statutorily denied
any refund as they failed to request it within the three year statute of
limitations.
4. In this case, Petitioners pre-paid $$$$$ on
their XXXXX taxes in XXXXX. They made
this payment because they are retired and aware that without withholding credit
there is an amount due in state individual income taxes in April of every year.
5. Petitioners concede that although they had
their return prepared and ready to file for XXXXX they simply forgot to file
it. Their son, a certified public
accountant, had prepared their state return which requested a refund. (Petitioners did file their XXXXX federal individual
income tax return on time.)
6. Petitioners speculate that they forgot about
their XXXXX state tax return because they were out of the state serving a
mission for their church.
7. In XXXXX, the Tax Commission notified
Petitioners that it had not received a XXXXX individual income tax return from
them. Petitioners then discovered their
oversight and filed the return, requesting the refund which the Operations
Division has denied.
8. Petitioners argue that it is unfair that the
Tax Commission did not contact them before the statute of limitations ran,
seemingly serving the Commission's own interest. Further, Petitioners feel that it is unjust that the Commission
has more than three years to pursue non-filers whereas Petitioners have only
three years to request a refund in a situation like this.
9. Petitioners have timely filed and paid their
state individual income taxes for years.
CONCLUSIONS OF LAW
A
tax return must be filed by every resident individual who is required to file a
federal income tax return for the taxable year. (Utah Code Ann. §59-10-502 (1).)
Further,
"in other instances where a refund or credit of tax which has not been
deducted and withheld from income is due, no credit or refund may be allowed or
made after three years from the time the tax was paid, unless, before the
expiration of the period, a claim is filed by the taxpayers or his legal
representative." (Utah Code Ann.59-10-529(7)(b).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that Petitioners are not entitled
to a refund of taxes for the year XXXXX as they failed to file their return
requesting the refund within the three year statute of limitations.
The
Commission further explains that this same statute of limitations applies in
cases where a taxpayer has filed a return and the state is seeking to assess additional
taxes through an audit or other means.
In other words, the Commission has only three years to pursue persons
who have filed their returns.
In
this case, Petitioners' oversight in forgetting to file on time and to assure
that their affairs were in order has regrettably cost them.
The
refund request on XXXXX individual income taxes is denied. It is so ordered.
DATED
this 29th day of June, 1993.
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