THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
Petitioner, :
) INFORMAL
DECISION
v. :
)
COLLECTION DIVISION
OF THE :
STATE TAX
COMMISSION OF UTAH, ) Appeal No. 85-0124
: Acct. No.
XXXXX
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission concerning a penalty and interest
waiver request on Account No. XXXXX for the tax year XXXXX. An informal hearing was held on XXXXX, in
the offices of the Utah State Tax Commission.
James E. Harward, Hearing Officer, heard the matter for the Commission.
At
the end of XXXXX, Petitioner bought his former business partner out of their
XXXXX Corporation. Income was declared
on present work in progress and fully depreciated equipment was assigned at
market value in the buy-out, resulting in an artificially high gross income of
$$$$$. Petitioner's usual income was
$$$$$. Petitioner submitted $$$$$ with
his return and a letter indicating that if Respondent would inform Petitioner
of the remaining balance, Petitioner would make continuous payments to have the
return paid off within the year.
Petitioner contacted the Tax Commission several times during the summer
of XXXXX, to find out the remaining balance and submitted an additional $$$$$
in XXXXX, but received no additional correspondence from the Tax Commission
until XXXXX. Petitioner has otherwise
remained current on taxes and has no other outstanding tax obligations.
Respondent
assessed a penalty of $$$$$ and interest of $$$$$ for a total of $$$$$. Petitioner has paid all but the penalty of
$$$$$.
DECISION AND ORDER
It
is the decision and order of the Utah State Tax Commission that the request for
waiver of penalty and interest on Account No. XXXXX for the tax year XXXXX is
denied.
The
assessment by the Collection Division of the Utah State Tax Commission is
hereby affirmed.
DATED
this 8 day of October, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSTAINED
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis *
Commissioner Commissioner
*
Since the hearing on this case, Chairman Mark K. Buchi has resigned and R. H.
Hansen has been appointed as the Chairman for the Commission. G. Blaine Davis has been appointed as a
Commissioner and has been duly advised of the facts and circumstances regarding
this case and is qualified to sign this decision.