93-0338 INCOME

 

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0338

: Account No. XXXXX

)

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX, XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX and his certified public accountant, 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. Petitioners filed their XXXXX Utah individual state income tax return with payment (including interest in the amount of ($$$$) on XXXXX, XXXXX. As a result, the Tax Commission assessed Petitioners two ten percent penalties of ($$$$) each, one for late filing and the other for late payment. Interest in the amount of ($$$$) was computed.

4. The Commission later reduced the penalty amount to a single ten percent penalty. Petitioners are requesting a waiver of this remaining ten percent penalty and acceptance of the interest amount already submitted.

5. Petitioners are XXXXX XXXXX citizens temporarily relocated to Utah due to XXXXX's employment assignment with XXXXX, a XXXXX. XXXXX. corporation and parent company of the local XXXXX. XXXXX began his Utah assignment at XXXXX in XXXXX XXXXX.

6. While working here, XXXXX retained XXXXX on their payroll, paying him in XXXXX XXXXX. The XXXXX XXXXX deducted XXXXX. XXXXX. withholding taxes. As such, XXXXX did not have any U.S. or Utah state tax withheld for XXXXX.

7. Then, in XXXXX XXXXX, the XXXXX.XXXXX. refunded to XXXXX all of his XXXXX and XXXXX income taxes previously withheld because he had been away from the XXXXX.XXXXX. for at least 12 months.

8. XXXXX then contacted XXXXX XXXXX for help on what to do about local state and federal taxes for the years XXXXX and XXXXX. XXXXX referred Petitioners to XXXXX accountants for advice.

9. After acquiring all of the necessary paperwork, Petitioners filed their state and federal tax returns for XXXXX. The Internal Revenue Service has since waived all penalties assessed on the year in question.

10. Petitioners timely filed and paid their XXXXX state individual income taxes.

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).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the remaining ten percent penalty associated with the individual income tax due on the year XXXXX. Interest already submitted in the amount of ($$$$) is accepted. As a result, Petitioners' XXXXX account is deemed paid in full. It is so ordered.

DATED this 10th day of September, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner