BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : FINDINGS OF FACT,
) CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 94-1344
UTAH STATE TAX COMMISSION, )
Respondent. : Account No. XXXXX
) Tax Type: Income
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Prior to the formal hearing, Petitioner's representative waived Petitioner's right to attend the formal hearing and requested that the hearing be held without him, based on the information he had previously submitted to the record in this matter. Present and representing the Respondent was XXXXX.
Based upon the evidence and testimony in the record and presented at the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is income tax.
2. The period in question is the tax year ending XXXXX.
3. Respondent has assessed $$$$$ in penalties and $$$$$ in interest against Petitioner. The underlying amount of the income tax owed was $$$$$.
4. Petitioner's representative, waived Petitioner's right to a settlement conference in this matter and the Commission received, the day before the scheduled formal hearing, a letter from Petitioner's representative stating that he would not attend the formal hearing and would rely instead on the documents he had already submitted to the record.
5. The statement submitted to the record by Petitioner's representative was that the Commission should waive the penalties and interest assessed against Petitioner's estate for reasonable cause. These documents stated that Petitioner had requested an extension and the correct income tax forms were filed and the taxes paid within the extension period. The documents provided by Petitioner's representative stated that Petitioner XXXXX. Further, they stated that Petitioner's XXXXX had great difficulty in obtaining records relating to XXXXX made by Petitioner through a XXXXX because of Petitioner's XXXXX involved.
6. At the formal hearing Respondent replied to the Petitioner's arguments, stating that Petitioner's extension was invalid because Petitioner had failed to prepay the required estimate of taxes owed. Petitioner's XXXXX after the XXXXX XXXXX for filing the tax return relating to this matter. There was no mention in the record of Petitioner's XXXXX, on or just prior to, XXXXX. Although Petitioner may have had difficulty in obtaining documents from the XXXXX, which made the extension necessary, Petitioner should have made the estimated payment with the extension. Further, Petitioner's filing and payment history indicated a pattern of late payments as in XXXXX and the tax year in question, XXXXX, penalties and interest were assessed against Petitioner.
7. No representative for Petitioner was at the scheduled formal hearing to respond to Respondent's statements or answer Respondent's questions.
8. Despite the difficulty involved in obtaining the necessary documents after Petitioner's XXXXX, Petitioner's representatives were able to complete and file the Petitioner's return during what would have been the extension period.
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(10).)
When filing a request for an extension the taxpayer must include with the extension request payment of the estimated amount of tax due. (Utah Code Ann. '59-10-516.)
CONCLUSIONS OF LAW
Petitioner's request for an extension was invalid because
Petitioner failed to include with the request the required payment of the estimated amount of the taxes that he owed.
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a reduction of the penalties to $$$$$. Reasonable cause does not exist to justify the reduction of the interest of $$$$$ associated with the XXXXX tax year. It is so ordered.
DATED this 27th day of February, 1995.
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 a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46b-14(3)(a).)