BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
) INFORMAL DECISION
) Appeal No. 93‑1422
) 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.
XXXXX asks the Commission to waive penalties totalling $$$$$, assessed in connection with his XXXXX Utah individual income tax liability.
During XXXXX, withholding tax of $$$$$ was deducted from XXXXX income. He assumed that such withholding tax would be sufficient to pay his tax liability at the end of the year. In fact, his liability for the year was
$$$$$, leaving a balance of $$$$$. Because he was unable to pay the remaining tax when due on XXXXX, he filed for an extension of the filing deadline.
XXXXX ultimately filed his XXXXX tax return on XXXXX. A $$$$$ late filing penalty and a $$$$$ late payment penalty were assessed against him. A $$$$$ "extension penalty" was also assessed.
XXXXX paid $$$$$ toward his tax liability during XXXXX and $$$$$ during XXXXX. There is no record that he has been delinquent in tax payments for other years.
XXXXX also failed to pay his federal income taxes for the year in question. The Internal Revenue Service has accepted partial payment of his federal tax liability.
DECISION AND ORDER
XXXXX has put forward two reasons as justifying waiver penalties in this case. First, his financial inability to pay his XXXXX income tax when due, and second, the fact that the IRS has agreed to a compromise settlement of his federal income tax liability.
The foregoing reasons, standing alone, do not justify waiver of the penalty in this case. However, the Commission notes that the extension penalty of $$$$$ was improperly imposed in this matter, since a late filing penalty and late payment penalty had already been imposed. Furthermore, the unpaid tax in question was a relatively small amount and XXXXX has no history of delinquent payment of tax in Utah.
Based on the foregoing, the Tax Commission finds that reasonable cause exists to waive all but $$$$$ of the penalty associated with XXXXX' XXXXX Utah income tax liability. It is so ordered.
DATED this 19 day of October, 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 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).