93-0485

Income

Signed 9/24/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: FINDINGS OF FACT,

XXXXX, ) CONCLUSIONS OF LAW,

: AND FINAL DECISION

)

: Appeal No. 93-0485

) 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. Present and representing the Petitioner 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 XXXXX.

3. According to Tax Commission records, Petitioners filed and paid their XXXXX individual income taxes on XXXXX. Since no pre-payment of tax had been made prior to the late filing, the Tax Commission assessed Petitioners a penalty. Interest was also added.

4. An additional $$$$$ late payment was charged when Petitioners did not remit the interest and penalty amounts with their tax payment.

5. Petitioners testified that they were serving a mission for the L.D.S. Church in the XXXXX from XXXXX to XXXXX.

6. They filed and paid their XXXXX taxes on time with the help of a friend who was stateside. This friend, however, was out of the U.S. when Petitioners needed to file their XXXXX taxes.

7. Petitioners had their son send them an extension form so that they could comply with the filing deadline for XXXXX, but he did not send them any information about pre-payment obligations.

8. Petitioners recalled that they had filed an extension with the federal government for XXXXX. They did not owe additional money in taxes to the I.R.S. due to past credits.

9. Petitioners are requesting a waiver of the penalty and interest assessments.

CONCLUSIONS OF LAW

According to Utah statute, the intent of the Legislature is "to conform, to the extent practicable, certain of the existing rules of procedure under and for the administration of the Utah individual income tax law to corresponding or apposite rules of administration and procedure prescribed by the federal income tax laws, with a view to reduction of duplication of effort, promotion of better understanding of requirements, and greater consistency between state and federal procedures and administration." (Utah Ann. Code '59-10-102(4).

Applicable federal law states that "U.S. citizens or residents living outside the U.S. and Puerto Rico...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) until the tax is paid." (U.S. Master Tax Guide Section 2509 (1993).)

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 penalties associated with the individual income tax due on the tax year XXXXX in that Petitioners filed their return within two months of returning to the U.S. The interest is not waived. It is so ordered.

DATED this 24th 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

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(2)(a).

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