86-0281 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0281

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from a decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on individual income tax 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 Tax Commission. XXXXX represented the Petitioner.

XXXXX testified that he prepared the returns for his daughter, Petitioner, as well as for his wife and other children. When XXXXX filed the tax return of Petitioner, XXXXX and XXXXX, Petitioner accidentally used the schedule on the right hand side of Form TC-40NR to calculate the amount due when Petitioner should have used the schedule on the left hand side, the schedule for a single taxpayer.

Respondent assessed interest but no penalty on XXXXX and XXXXX XXXXX's accounts. Respondent assessed interest and a $$$$$ penalty on Petitioner's account. Petitioner requests a waiver of the penalty on Account No. XXXXX.

FINDINGS

The error in the computation of the XXXXX tax for Petitioner was identical to the error in the computation of tax for XXXXX and XXXXX.

The additional tax and interest assessed on Petitioner's account was $$$$$ while the additional tax and interest on XXXXX's account was $$$$$ and the additional tax and interest on XXXXX's account was $$$$$.

Respondent did not appear at the hearing, or otherwise justify why Petitioner's account was assessed a $$$$$ penalty while the other two accounts were not assessed a penalty even though the amounts due on all three accounts were within $$$$$ of each other and the errors were identical. Respondent did not fairly assess a penalty on the Petitioner's account and no penalty on the other two accounts.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty on Account No. XXXXX for the tax year XXXXX be waived.

The Collection Division of the Utah State Tax Commission is ordered to adjust its records in accordance with this decision.

DATED this 7 day of October, 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