01-1631

Income Tax

Signed 6/4/02

 

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-1631

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Income Tax

THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 1993

)

Respondent. ) Judge: Davis

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP

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

Ms. Jan Sanchez, from the Taxpayer Services Division

 

 

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on May 13, 2002.

The Internal Revenue Service performed a CP 2000 audit on the 1993 income tax return of Petitioner. Petitioner entered into an agreement with the Internal Revenue Service, but did not file an amended return for 1993 as was required by law. Accordingly, when the Auditing Division received notice of the audit from the Internal Revenue Service, it made an assessment of additional taxes, penalty, and interest. The penalty has now been waived, but Petitioner is seeking waiver of the interest on the amounts due.

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

In this matter, Petitioner feels it is very unfair to impose interest based upon the long period of time it took for this matter to be brought to their attention. However, one of the reasons the matter took so long was because Petitioners filed bankruptcy, and Respondent was legally prohibited from pursuing the matter as long as the taxpayers were in bankruptcy. Therefore, there is no Tax Commission employee error in this matter, and the interest is due and payable. Petitioner could have avoided this problem by filing an amended return as required by law.

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 1993 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 4th day of June , 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 4th day of June , 2002.

 

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner