93-0471

Income

Signed 12/9/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0471

: 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. Petitioner was present and represented herself.

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 filed her XXXXX individual income tax return with payment on XXXXX. As a result, the Tax Commission assessed Petitioner a ten percent late payment penalty and interest. When Petitioner failed to pay in full, the Commission assessed her another $$$$$ penalty.

4. The Commission later waived the ten percent penalty. Petitioner is seeking a waiver of the remaining $$$$$ penalty and interest.

5. Petitioner testified that she lived in Germany for the entire year of XXXXX. She filed her return late with the understanding that overseas American citizens are granted an automatic extension. She requested this extension when she filed her return.

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).)

U.S. citizens or residents living outside the U.S. are granted an automatic extension up to and including the 15th day of the sixth month following the close of their tax year for filing a return if they attach a statement to their return showing that they are entitled to such an extension. In addition, the time for payment of tax is also extended for two months unless the I.R.S. specifies otherwise. However, interest will be assessed on any unpaid tax from the due date of the return without regard to the automatic extension. (U.S. Master Tax Guide 1993)

DECISION AND ORDER

In this case, Petitioner paid the tax amount due and filed her return within the time allotted. She, however, failed to pay $$$$$ in accrued interest. The failure to pay the accrued interest within 30 days is one reason why the second penalty in the amount of $$$$$ was assessed.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the remaining penalty of $$$$$ associated with the individual income tax due on the year XXXXX. The interest is to be computed from XXXXX to XXXXX (the date Petitioner requested a waiver). It is so ordered.

DATED this 9th day of December, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63-46b-13(1), 63-46b-14(3)(a).

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