BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: FINDINGS OF FACT,
XXXXX, ) CONCLUSIONS OF LAW,
: AND FINAL DECISION
: Appeal No. 93-0783
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for an informal 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 is a U.S. citizen and resident of Utah who left the U.S. in XXXXX and went to XXXXX where she remained until XXXXX.
4. Prior to her departure from the U.S., Petitioner filed and pre-paid her XXXXX federal income taxes. She also contacted the Tax Commission to learn how to do the same with the state to avoid any penalties later.
5. In XXXXX, Petitioner talked with Commission employee XXXXX who told her that the state did not have a pre-payment mechanism for Petitioner's situation and that if she filed her XXXXX individual income taxes within two months of her return there would be no penalty or interest assessments.
6. Petitioner filed her return within two months of her return along with payment in the amount of $$$$$. The Commission assessed Petitioner two $$$$$ late penalties, one for late filing and the other for late payment, plus interest.
7. Petitioner is requesting a waiver of the penalty and interest assessments as she feels she did everything possible to comply with state requirements.
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 XXXXX...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
penalties associated with the individual income tax due on the tax year XXXXX. Interest is not waived. It is so ordered.
DATED this 22nd day of September, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
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).