BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0208
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an Informal Hearing on
XXXXX. James E. Harward, Hearing
Officer, heard the matter for the Tax Commission. XXXXX, CPA, XXXXX, CPA, and XXXXX appeared representing the
Petitioner. XXXXX and XXXXX appeared.
The
Petitioner presented evidence that the former CPA of the company had died. When the new CPA, XXXXX learned of the
delinquent taxes, he contacted the Utah State Tax Commission and the Internal
Revenue Service. The Internal Revenue
Service abated the penalties. XXXXX
claims that XXXXX of the Utah State Tax Commission agreed to handle the matter
in the same manner as the IRS. XXXXX
further claimed that XXXXX of the Utah State Tax Commission also committed to
abating the penalties and interest.
A
check was submitted with restrictive endorsement, which was not accepted by the
Tax Commission. Eventually a check was
written in excess of $$$$$ with a letter stating an understanding that the
penalty and interest would be abated.
XXXXX
and XXXXX both testified that they are Tax Commission employees and that they
have no authority to waive penalty and interest, and they never represented
that the penalty and interest would be waived.
DECISION AND ORDER
The
Tax Commission is not unfamiliar with situations such as Petitioner's where a
CPA or bookkeeper has been at fault resulting in delinquent returns and
subsequent penalties. In this case, the
Tax Commission will continue to follow its former ruling in denying a waiver of
the penalty and interest on such claims.
Further, the Tax Commission finds that there is insufficient evidence
that a commitment was made by a Tax Commission employee that the penalty and
interest would be waived. The
Commission further finds that the only body with the authority to waive penalty
and interest is the Tax Commission itself.
No prior commitment has been made in this case for abate of penalty and
interest. The Commission declines to
waive the penalty and associated interest in this matter.
DATED
this 30 day of December 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner