BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
:
Petitioner, )
:
) INFORMAL
DECISION
:
)
AUDIT DIVISION
OF THE : Appeal No. 86 0231
STATE TAX
COMMISSION OF UTAH, ) Account No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Audit
Division of the Utah State Tax Commission (Respondent) to adjust Petitioner's
income tax return for the tax year XXXXX.
An Informal Hearing was held on October 31, 1986, in the offices of the
Utah State Tax Commission. David J.
Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX
represented himself.
Petitioner
deducted $$$$$ in retirement income (line 10 of Form TC-40) from adjusted gross
income for the tax year XXXXX.
Petitioner had received a gross annuity amount of $$$$$ from the Federal
Civil Service Retirement System.
Although the annuity was paid to "XXXXX," Petitioner divided the
income between himself and his spouse on Schedule B (List of Retirement
Income). Petitioner deducted $$$$$ for
himself and $$$$$ for his spouse for a total deduction of $$$$$.
Respondent
disallowed $$$$$ which resulted in a balance due of $$$$$.
FINDINGS
Petitioner
incorrectly divided the retirement income between himself and his spouse. A note in bold face type on the front of
Schedule B states that "income from joint ownership must be divided
equally between you and your spouse.
However, the pension of one spouse may not be divided between both
spouses." (Emphasis in original).
The
Specific Line by Line Instructions for Form TC-40 also state that the pension
of one spouse may not be divided between both spouses. The instruction for line 10, retirement
income, states in bold face type that "pensions and annuities of one
spouse which qualify as retirement income may not be divided between both
spouses."
In
this situation, the pension was paid solely to XXXXX, and not to XXXXX and
XXXXX. Therefore, the pension may not
be divided. The total deduction is not
to exceed $$$$$ pursuant to line 5, Schedule B. The maximum amount which Petitioner may deduct is $$$$$ and not $$$$$.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
Petition for Redetermination of the income tax adjustment for the tax year
XXXXX be denied.
The
adjustment by the Audit Division of the Utah State Tax Commission is hereby
affirmed.
DATED
this 1 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