BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 93-1590
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for hearing on XXXXX, pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. Alan Hennebold, Administrative Law Judge, conducted the hearing on behalf of the Commission. XXXXX represented herself, with assistance from XXXXX of XXXXX. This decision is based upon Ms. XXXXX's testimony and information contained in the Commission's file.
Ms. XXXXX asks the Commission to waive late filing and late payment penalties in connection with her Utah income tax liability for the years XXXXX, XXXXX and XXXXX.
Ms. XXXXX entered the United States and Utah in XXXXX to attend school. She is not a citizen of the United States. Between XXXXX and XXXXX, she earned negligible income. Beginning in XXXXX, she began to receive somewhat larger amounts of income, in connection with her schooling.
During the years XXXXX through XXXXX, Ms. XXXXX did not file Utah income tax returns because she believed her earnings were below the threshold at which filing was necessary. She would have been correct in her belief had she been a citizen. However, during early XXXXX, the Internal Revenue Service advised her that she must file federal returns.
Ms. XXXXX responded by consulting a commercial tax preparer and filing both federal and state returns for the years in question. Her Utah tax liability was thereby established at $$$$$ for XXXXX, $$$$$ for XXXXX and $$$$$ for XXXXX. The Tax Commission assessed late filing and late payment penalties of $$$$$ for XXXXX, $$$$$ for XXXXX and $$$$$ for XXXXX.
Ms. XXXXX filed and paid her XXXXX Utah income tax on time.
DECISION AND ORDER
Ms. XXXXX agrees that interest is properly assessed against her, but asks that penalties be waived. In considering her request, the Commission notes that Ms. XXXXX would not have been subject to tax under more typical circumstances. Ms. XXXXX's failure to file appears to have been a good faith error. Furthermore, the amount of the tax at issue is relatively small.
Based on the foregoing, the Commission finds reasonable cause to waive the penalties associated with Ms. XXXXX's XXXXX, XXXXX and XXXXX Utah income tax. Interest is not waived. It is so ordered.
DATED this 19th day of November, 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).