93-0789

Income

Signed 8/11/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

) INFORMAL DECISION

XXXXX, )

) Appeal No. 93‑0789

) Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. As provided for by Utah Code Ann. '63‑46b‑5, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

Petitioners ask the Commission to waive penalty and interest on their XXXXX individual income tax.

Petitioners were new residents of Utah during XXXXX and had never filed a Utah individual income tax return prior to that year. Their CPA filed a request for extension of Petitioners' XXXXX filing deadline. Petitioners then filed their return on XXXXX, establishing a tax liability of $$$$$. The return claimed credits of $$$$$ and enclosed payment of the balance of $$$$$.

Upon receipt of Petitioner's return, Tax Commission staff assessed penalties totalling $$$$$ and interest.

DECISION AND ORDER

Utah's Individual Income Tax Act allows an extension of the filing deadline when the extension request is accompanied by payment of either 90% of the tax due or an amount equal to the tax paid during the previous year. Penalty was assessed against the XXXXX because their extension request failed to meet either of the foregoing standards.

In view of the fact that the XXXXX were first time filers during the year in question, the Tax Commission finds reasonable cause exists to waive the penalty associated with their XXXXX income tax liability. Interest is not waived. It is so ordered.

DATED this 11 day of August, 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 the final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861‑5A‑1(p) and Utah Code Ann. '63‑46b-14(3)(a).

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