86-0425 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0425

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 years XXXXX, XXXXX and XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Petitioner stated that he is not a Utah resident, that he was not a Utah resident during the tax years in question, and that he has not been a Utah resident for many years. Petitioner stated that he was not aware that taxable activity related to real property is reportable not only in the state of residence but also in the state where the real property is located. Petitioner requested a waiver of penalty based on reasonable cause asserting that "reliance on lack of notice from a tax preparer or attorney should be considered as reasonable cause." Petitioner stated that because of the nature of his business, he is required to move around frequently and that correspondence is consequently delayed.

Petitioner requests a waiver of the $$$$$ per year late filing penalty, asserting that this penalty has never been assessed in the past to individuals. Petitioner requests a waiver of the other penalty, asserting that the Tax Commission has been lenient in the past for first time offenders.

The tax due for the tax year XXXXX was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$.

The tax due for the tax year XXXXX was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$.

The tax due for the tax year 1984 was $$$$$.

Respondent assessed a penalty of $$$$$ and interest of $$$$$.

FINDINGS

Petitioner had the burden of proof to show that he was assessed a penalty and interest in error. Petitioner failed to meet this burden of proof. Petitioner did not establish that the late filing was due to reasonable cause.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for the tax years XXXXX, XXXXX and XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 12 day of November 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