95-1884
Income
Signed 6/6/96
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX,
Petitioner, ) INFORMAL
DECISION
:
v. )
:
COLLECTION DIVISION OF
THE ) Appeal
No. 95-1884
UTAH STATE TAX
COMMISSION, :
) Account No. XXXXX
:
Respondent. ) Tax
Type: Income
_____________________________________
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 were
XXXXX and 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 $$$$$ and interest of
approximately $$$$$ arising from the late payment of income tax for the year
ending XXXXX.
Petitioner explained that
he was a federal retiree and that he had elected to receive his federal retiree
tax refund as a credit towards his tax liability over a three year period. He stated that when he computed his tax
liability for XXXXX he discovered that, after applying the federal retiree
credit of $$$$$, he had a Utah tax liability of $$$$$. Petitioner explains that he was unable to
pay this amount on XXXXX, but that he did pay the tax in its entirety by the
end of XXXXX. Petitioner points out
that he was entitled to a federal retiree credit in the amount of $$$$$ against
his XXXXX tax liability. He felt that
the State of Utah already had this $$$$$ of his money which they were holding
to apply to the next year.
Respondent initially
failed to appear at the Informal Hearing.
Representatives for Respondent did eventually appear after telephone
calls from the Appeals Division. They
explained that they could not apply the federal retiree credit to his XXXXX
income because pursuant to the settlement with the federal retirees it had been
designated to be applied to XXXXX.
Respondent's representatives stated that Petitioner's account history
indicated he had a pattern of timely paying and filing his taxes. There was just one year, XXXXX, when some
additional interest had been assessed.
APPLICABLE LAW
The Tax Commission is
granted the authority to waive, reduce, or compromise penalties and interest
upon a showing of reasonable cause.
(Utah Code Ann. '59-1-401(10).)
DECISION AND ORDER
The appeal has presented
some unusual circumstances. Because the
Respondent did not initially appear at the hearing and Petitioner had a long
history of timely filing and paying his income tax, as well as the fact that
full payment was made within a month and a half of the due date, the Commission
has determined that a waiver of the penalties would be appropriate.
The Tax Commission finds
sufficient cause does exist to waive
the penalties of $$$$$ associated with Petitioner's income tax for XXXXX. Sufficient cause was not shown to waive the
interest. It is so ordered.
DATED this 6 day of June,
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.)
^^