02-0168

Income Tax

Signed 11/27/02

 

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 02-0168

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Income Tax

THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 2000

)

Respondent. ) Judge: Davis

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP, CPA

For Respondent: Ms. Laurie Payne, 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 October 16, 2002.

Petitioner's income tax return for 2000 was filed on October 15, 2001. Petitioner had not paid in an amount of tax equal to 90% of the tax for the year 2000, or 100% of the tax for 1999. Accordingly, a penalty and interest were imposed.

After the waiver of the penalty was denied because Petitioner had not filed a 1999 tax return, Petitioner then filed the 1999 tax return, and it was determined they had a sufficient refund due from 1999, together with payments made for the year 2000, to equal the total tax for the year 1999, and therefore no penalty should have been imposed. However, there were additional amounts of tax due, so there was interest on the additional tax, even though the penalty should not be imposed.

At the hearing, the parties stipulated that the penalty has been or could be waived, but that the interest was appropriate and should not be 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 been shown to justify a waiver of the penalty associated with the 2000 income tax return of Petitioner. However, sufficient cause has not been shown to justify a waiver of the interest which is not waived. 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 27th day of November , 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 27th day of November , 2002.

 

 

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner