01-1306

Income Tax

Signed 9/24/02

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONERS, )

) ORDER

Petitioners, )

) Appeal No. 01-1306

v. ) Account No. #########

)

AUDITING DIVISION OF ) Tax Type: Income Tax

THE UTAH STATE TAX ) Tax Year: 1995

COMMISSION, )

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER 1

PETITIONER 2

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

Mr. Steve Nelson, from the Auditing Division

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission on August 26, 2002 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.

Respondent previously made an adjustment to the income tax returns of Petitioners based upon information received from the Internal Revenue Service. The Internal Revenue Service had made an audit adjustment, and Petitioners did not agree with that adjustment. Accordingly, Petitioners had that adjustment under appeal with the Internal Revenue Service. However, their appeal was not successful.

Accordingly, Petitioners filed an amended income tax return with the Internal Revenue Service to attempt to start the process again. Nevertheless, the time periods may have expired, and the Internal Revenue Service is not yet willing to make a change to the previous assessment. Accordingly, Petitioners have made payment to the Utah State Tax Commission for the amounts shown on the Statutory Notice of Audit Change sent to them by Respondent. Petitioners represented that they recognize it will be necessary for the Internal Revenue Service to make an adjustment in their return before a further adjustment would be required to be made by the Utah State Tax Commission. Petitioners therefore stipulated that the matter could be dismissed, and if an adjustment is made by the Internal Revenue Service, then Petitioners will file an amended income tax return with the State of Utah, and if that is not accepted, then they would have a basis for commencing a new appeal.

DECISION AND ORDER

Based upon the foregoing, and the stipulation of the parties, this appeal is hereby dismissed. 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 24^th day of September , 2002.

________________________________

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 24^th day of September , 2002.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner