93-1701

Penalty & Interest Assessment

Signed 1/31/94

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: ORDER

XXXXX, )

: Appeal No. 93-1701

)

: Account No. XXXXX

_____________________________________

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, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was Petitioner's certified public accountant, XXXXX.

According to Tax Commission records, Petitioner filed and paid her XXXXX individual income tax ($$$$$) on XXXXX. As a result of the tardiness, the Commission assessed Petitioner a ten percent penalty and interest.

Petitioner had submitted an extension request for this same tax year with the federal government. Petitioner, however, had not submitted a pre-payment to the Tax Commission.

According to Petitioner's accountant, the taxpayer had been informed that income she had received from a trust would be subject to tax, however, the amounts had not yet been determined. Without the Schedule K-1 form, the accountant could not ascertain Petitioner's tax liability so he asked for the federal extension.

In addition to the ten percent penalty, the Commission also added a second penalty of $$$$$ when Petitioner did not pay the balance in full by the due date.

Petitioner is requesting a waiver of the penalty and interest amounts under these circumstances.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to reduce the first ten percent penalty of $$$$$. Petitioner failed to file an extension request on time with the Commission and did not submit any payment of any kind on the due date. The second penalty of $$$$$ is waived. Interest is not waived.

This Decision and Order will become the Final Decision and Order of the Commission unless the parties to this case file a written request for a Formal Hearing within ten (10) days of the date of this decision. 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

Appeals Division

160 East 300 South

Salt Lake City, Utah 84134

It is so ordered.

DATED this 31st day of January, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner