93-1422
Income
Signed 10/19/93
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
) INFORMAL DECISION
XXXXX, )
) 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.
FINDINGS
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
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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