BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX,
:
Petitioner, :
: Informal
Decision
v. :
:
AUDIT DIVISION
OF THE : and Order of Approval
UTAH STATE TAX
COMMISSION, :
Respondent. : Appeal No. 85-0233
: Audit
Period XXXXX
: Thru XXXXX
_____________________________________
STATEMENT OF CASE
The
Petitioner has requested a Redetermination of the Statutory Notice of
Deficiency dated XXXXX. The Notice of
Deficiency was as a result of an audit done by the Auditing Division of the
Utah State Tax Commission. The Petition
for Redetermination was dated XXXXX.
The Auditing Division timely filed an answer to that Petition on the
XXXXX. A hearing was scheduled for this
matter on XXXXX. James E. Harward,
Hearing Officer conducted the hearing for and in behalf of the Tax Commission.
The Petitioner was represented by XXXXX, Controller. The Respondent was represented by XXXXX, Assistant Director
Auditing Division and XXXXX, Assistant Attorney General for the State of
Utah. At the outset of the hearing, a
Stipulation was entered into by which the Petitioner would withdraw his
Petition as it relates to additional tax.
Said Stipulation was based upon the issuance of an amended audit report. The amended audit report was, in fact,
issued on XXXXX and the formal request of the Petitioner to withdraw the
Petition as it relates to the tax due was dated XXXXX. A copy of the amended audit report and the
letter of withdrawal is attached hereto and incorporated herein by reference.
The
sole remaining issue to be determined by the Tax Commission is the 10%
negligence penalty. The Petitioner
claims its good payment record and its past cooperation with the Tax Commission
are grounds for the reduction and/or waiver of the penalty. It further cites that the error in the
amended audit report is so small in relation to the entire amount of tax for
that period that it is insignificant in relationship. The audit report resulted in four areas of adjustment; 1)
unreported tax on other income, 2) unreported goods consumed on XXXXX, 3)
assets purchased out of state, and 4) leased equipment.
DECISION AND ORDER
The
Tax Commission has reviewed the payment and compliance record of the Petitioner
as requested. It has also reviewed the
prior audits on the Petitioner which have brought to the attention at least two
of the primary areas for which the Petitioner was assessed a deficiency. This leads the Commission to believe that
the Petitioner was aware of those particular areas and should have reported
them, and did not. Therefore, the
Commission finds that the penalty, as assessed by the Auditing Division, is
justified. Based on the foregoing, the
Commission declines to exercise its discretionary authority to waive the
penalty or any portion thereof.
DATED
this 27 day of March, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Mark K.
Buchi Joe
B. Pacheco
Chairman Commissioner
R. H. Hansen Roger
O. Tew
Commissioner Commissioner