00-1475

Income Tax

Signed 6/1/01

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

) ORDER

Petitioner, )

) Appeal No. 00-1475

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Income Tax

THE UTAH STATE TAX )

COMMISSION, ) Judge: Davis

)

Respondent. )

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER

For Respondent: Ms. Vickie Christofferson, from the Taxpayer Services Division

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing on May 10, 2001 pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner has requested a waiver of penalties imposed upon his 1994 and 1998 Utah individual income tax returns.

In 1994, Petitioner received between 12 and 15 separate 1099 forms, and in preparing his tax return, the income from one of the those 1099's was inadvertently omitted. The Internal Revenue Service picked up the omission, and sent a notice to the Utah State Tax Commission. Respondent sent a notice, but Petitioner alleges he did not receive the notice because the post office frequently would not deliver his mail because of "his 13-year old arthritic dog". He also stated that when the Internal Revenue Service made the adjustment, he did not know he was required to file an amended return.

For 1998, Petitioner filed an extension without payment. He stated his CPA did not inform him he was required to pay, and his CPA is now deceased so he cannot verify that matter or discuss it with him.

In addition to the penalties involved in this matter, Petitioner also incurred extension penalties for 1993 and 1995. Neither of those penalties was waived.

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 penalties associated with the 1994 and 1998 income tax returns. 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 1^st day of June, 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 1^st day of June, 2001.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner