00-1477

Income Tax

Signed 5/9/01

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, )

) ORDER

Petitioner, )

) Appeal No. 00-1477

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Income Tax

OF THE UTAH STATE TAX )

COMMISSION, ) Judge: Davis

)

Respondent. )

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER

For Respondent: Ms. Laurie Allred, from the Taxpayer Services Division

 

 

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing on May 2, 2001 pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner resides in STATE, and is not domiciled in Utah. However, he is a member of a partnership that had Utah income, and he received a schedule K-1 for that partnership. The accountant who prepared the partnership return told him he would not have to file a Utah return because he did not live in Utah.

Petitioner later found out about his obligation to file a Utah income tax return, and he filed those returns for 1997 and 1998. Petitioner also amended his STATE returns, and received a refund, but interest was not refunded to Petitioner by STATE.

Because the returns and payment of the taxes were late, penalties and interest were added. The penalties have now been waived, but Petitioner is requesting a waiver of the interest. The waiver is requested because he voluntarily filed, and because STATE would not pay interest on its refund.

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).

DISCUSSION

Interest charges are primarily for the lost use of money by the state, and it is not a penalty. All penalties have been waived.

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 and 1998 income tax returns 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 9th 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 9th day of May, 2001.

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner