86-0034 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

                                                                                    :

            Petitioners,                                                                   )

                                                                                    :

v.                                                                                             )           INFORMAL DECISION

                                                                                    :

                                                                                    )

COLLECTION DIVISION OF THE                                      :           Appeal No. 86 0034

STATE TAX COMMISSION OF UTAH,                              )           Acct. No. XXXXX

                                                                                    :

            Respondent.                                                                 )

_____________________________________

STATEMENT OF CASE

            An Informal Hearing was held on August 11, XXXXX. XXXXX, Hearing Officer, heard the matter for the Utah State Tax Commission.  XXXXX represented the Petitioner.

            Petitioner testified that a money order was prepared and mailed with the XXXXX Individual Income Tax Return.  The money order was never cashed by the State Tax Commission and was apparently lost.

            Respondent's records and Tax Commission Central Files indicate that Petitioner's XXXXX Individual Income Tax Return was received by the Utah State Tax Commission on April 2, XXXXX.  The date on the photocopy of Petitioner's money order receipt is March 30, XXXXX.  Based on Petitioner's return, the total amount owing to Utah for individual income tax was $$$$$; however, because $$$$$ had been previously withheld, Petitioner was required to remit $$$$$.  On April 15, XXXXX, the Utah State Tax Commission received an amended Individual Income Tax Return for the year XXXXX from Petitioner. Petitioner had misstated his income in the original return and adjusted it to reflect that the Tax Commission owed him a refund of $$$$$ not including interest.  On July 1, XXXXX, Respondent notified Petitioner that Respondent had not received "$$$$$" for XXXXX.  The letter indicated that if Petitioner had paid that amount, to send a copy of the cancelled check.  Petitioner subsequently issued a new money order and paid $$$$$ on August 8, XXXXX.  Thereafter, Petitioner made a claim for waiver of penalty and interest, and in preparing the claim, Respondent indicated that the tax due was $$$$$ (the adjusted amount) and that it was paid on April 2, XXXXX, the date the Utah State Tax Commission received Petitioner's return.

FINDINGS

            The Commission finds that Petitioners paid $$$$$ by money order at the same time they mailed their Individual Income Tax Return, and that the money order was probably received by the Utah State Tax Commission on April 2, XXXXX. The Commission finds that the money order was apparently lost.

DECISION AND ORDER

            Based on the foregoing facts and evidence presented at the hearing, it is the Decision and Order of the Utah State Tax Commission that the penalty and interest assessment be waived.

            DATED this 7 day of October of 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

ABSENT

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.