00-0752

INCOME TAX

SIGNED 1/17/01

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

) ORDER

Petitioner, )

) Appeal No. 00-0752

v. )

) Account No. #####

AUDITING DIVISION OF THE )

UTAH STATE TAX COMMISSION, ) Tax Type: Income Tax

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER

For Respondent: Ms. Becky McKenzie, from the Auditing Division

Mr. Steve Nelson, from the Auditing Division

STATEMENT OF THE CASE

This matter came before the Commission on December 13, 2000, for a Status Conference, and was therein converted to an Initial Hearing, to be conducted pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner timely and correctly filed his 1996 federal and state income tax returns, and all amounts shown thereon were due and refunds were given.

The Internal Revenue Service later made an incorrect adjustment to the returns, and based upon that adjustment, Petitioner filed an amended Utah State tax return to agree with the adjustments made by the Internal Revenue Service, and was given an additional refund. Thereafter, Petitioner was notified that the Internal Revenue Service was incorrect, and acknowledged their error in writing to Petitioner. Thereafter, Petitioner was required to again correct the return back to the amount which had been shown on his original return, and was required to refund the tax which had earlier been refunded to him. In addition, he was charged interest in an amount of $$$$$ which is current as of the hearing date.

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

Based upon the foregoing, the Commission finds that sufficient cause has been shown to justify a waiver of the interest associated with the 1996 income tax return of Petitioner. It is so ordered.

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

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 17^th day of January , 2001.

____________________________________

G. Blaine Davis

Administrative Law Judge

BY ORDER OF THE UTAH STATE TAX COMMISSION:

The Commission has reviewed this case and the undersigned concur in this decision.

DATED this 17^th day of January , 2001.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner