BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : ORDER
v. : Appeal No. 93-1596
COLLECTION DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Petitioner represented himself. Respondent was represented by XXXXX.
According to Tax Commission records, Petitioner filed his XXXXX Utah individual income tax return on XXXXX. He owed $$$$$ in taxes. No withholding credits were available. The Commission penalized Petitioner for the late filing.
Then, in XXXXX, Petitioner paid $$$$$ in taxes. A second penalty attached for failing to pay in full.
In late XXXXX, Petitioner paid another $$$$$, paying the tax amount balance due. At that time, Petitioner still owed $$$$$ in interest.
In a letter dated XXXXX, Petitioner requested a waiver of the penalty and interest amounts. On XXXXX, the Commission denied the request.
Petitioner then paid $$$$$ in interest on XXXXX. (The total interest then due was $$$$$).
Petitioner explained that he had been employed in Utah prior to XXXXX and had had withholding tax withheld on his paychecks at that time. Prior to XXXXX, he transferred with his same employer to Florida where there are no state income taxes.
In XXXXX, he transferred with the same company back to Utah where he lived for 10 months before moving to California.
He was later surprised to learn that his employer had not withheld any taxes from his Utah pay while he was here. Petitioner set up a payment arrangement and fully paid the tax amount due by XXXXX.
Petitioner is requesting a waiver of the penalties assessed in this case. He contends that if anyone is to be penalized it should be his employer for failing to withhold taxes. Petitioner did not intentionally try to avoid paying the Utah income taxes.
Petitioner has moved frequently since XXXXX and has had difficulty staying abreast of the status of this case. He maintains that he didn't know that his initial waiver request had been denied until years later. He remembers calling the Tax Commission and asking about his request. He recalled that someone at some point told him it had been granted.
Tax Commission records show that delinquent notices were mailed on a continuing basis. A second waiver request had been processed in XXXXX and another in XXXXX for the same year XXXXX.
DECISION AND ORDER
Based upon the information provided at the Settlement Conference, there is no question that Petitioner was late filing his Utah XXXXX return. The penalty assessed in the amount of $$$$$, therefore is not waived. The second penalty, however is waived. Interest is computed from the due date of XXXXX, to XXXXX.
This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:
Utah State Tax Commission
210 North 1950 West
Salt Lake City, Utah 84134
Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.
DATED this 18th day of July, 1994.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer