95-1334
Income
Signed 1/9/96
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX, )
:
Petitioner, ) INFORMAL
DECISION
:
v. )
:
COLLECTION DIVISION OF
THE ) Appeal
No. 95-1334
UTAH STATE TAX
COMMISSION, :
) Account No. XXXXX
:
Respondent. ) Tax
Type: Income Tax
_____________________________________
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. An Informal Hearing was held on XXXXX. Jane Phan, Administrative Law Judge, heard
the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was
XXXXX.
Based upon the evidence
in the file and presented at the Informal Hearing, the Commission makes its:
FINDINGS
Petitioner is appealing
the assessment of penalties in the amount of $$$$$ and interest of
approximately $$$$$ relating to his income tax for the XXXXX tax year. Petitioner's representative explained that
in XXXXX Petitioner had graduated from college and became a full time employee. He had not changed his withholding status
for XXXXX and had to pay additional tax so for XXXXX Petitioner did request
that his company change his withholding status. Apparently
Petitioner's employer made an error, while they did increase the amount of
withholding for the federal taxes they did not increase the amount of
withholding for the state taxes.
Petitioner's representative stated that Petitioner was unaware of the
error until his XXXXX taxes were computed.
At that time Petitioner did not have sufficient funds to pay the state
taxes and needed to wait to pay until he received his refund from the federal
government. Petitioner's representative
stated that Petitioner did file for an extension.
Respondent would not
recommend waiver of the penalty or interest.
At the hearing Respondent explained that an extension is an extension to
file, not an extension to pay. The
Respondent stated that the penalty assessed was an extension penalty. Respondent also stated that Petitioner had
been assessed a penalty and interest relating to his XXXXX income tax.
APPLICABLE
LAW
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).)
DECISION AND ORDER
Although an error on the
part of Petitioner's employer may have contributed to Petitioner's late
payment, other contributing factors were the fact that Petitioner did not make
sure the employer was sufficiently withholding and his financial inability to
pay the difference at the time the taxes were due. Financial hardship is not reasonable cause for waiver of penalty
or interest. Further, in considering whether reasonable cause has been shown
the Commission must consider that this in not Petitioner's first error
concerning his income taxes. Penalties
and interest were assessed in XXXXX.
The Tax Commission finds
sufficient cause does not exist to waive the penalties of $$$$$ or interest of
approximately $$$$$ associated with the Petitioner's income tax for XXXXX. It is so ordered.
DATED this 9th day of
January, 1996.
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
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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and
Utah Code Ann. '63-46b-13 et. seq.)
^^