00-0801

Income Tax

Signed 5/9/01

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONERS, )

) ORDER

Petitioner, )

) Appeal No. 00-0801

v. ) Account No. #####

)

AUDITING DIVISION OF ) Tax Type: Income Tax

THE UTAH STATE TAX )

COMMISSION, ) Judge: Davis

)

Respondent. )

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONERS

For Respondent: Mr. Dan Engh, from the Auditing Division

Ms. Brenda Salter, from the Auditing Division

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing on April 17, 2001 pursuant to the provisions of Utah Code Ann. '59-1-502.5.

When Petitioners filed their 1997 income tax return, they omitted income earned in the States of STATE and STATE, because they believed it was not taxable since it was earned out of state.

The Auditing Division made an adjustment to include the income earned in other states because Petitioners were domicile in Utah during 1997.

Petitioners now acknowledge that the income tax assessed by Respondent is appropriate, but they have asked for a waiver of the interest on the amount due because of the lengthy time between the filing of the return and the time when the assessment was made. In addition, Petitioners did receive a refund of taxes which they had paid, so they assumed what they had done was appropriate. No penalties were imposed upon the assessment.

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 not been shown to justify a waiver of the interest associated with the 1997 income tax return of Petitioners. 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 9^th day of May, 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 9^th day of May, 2001.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner