BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
AUDITING
DIVISION OF THE STATE : Appeal No. 86 0476
TAX COMMISSION
OF UTAH, ) Account No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from an audit deficiency prepared
by the Auditing Division of the Utah State Tax Commission (Respondent) on
individual income tax account No. XXXXX for the tax years XXXXX through
XXXXX. An Informal Hearing in the above
matter was held on XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Tax Appeals Supervisor, and David J.
Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX and XXXXX represented themselves. XXXXX, Compliance Auditor, represented the
Respondent.
Respondent
determined an additional tax due of $$$$$, a penalty of $$$$$, and interest of
$$$$$(as of XXXXX) for a total amount due of $$$$$.
Petitioner
does not object to the tax but does object to the penalty and interest. Petitioner asserted that his Fourth, Fifth
and Fourteenth Amendment rights were violated because evidence as to his tax
liability was obtained against his will.
Petitioner stated that the Tax Commission cannot impose penalty and
interest because Petitioner was under compulsion to provide the information.
FINDINGS
Because
Petitioner had not filed individual income tax returns for the tax years XXXXX
through XXXXX, Respondent sent a compliance A-4 letter on XXXXX. When Petitioner failed to respond to this
letter, Respondent pursued writ of mandate actions against Petitioner. Petitioner consequently filed true returns
but changes needed to be made to some of the computations. Respondent then prepared the audit
deficiency. No tax, interest, or
penalty has been paid as of the date of the hearing.
The
preparation of a W-4 form by Petitioner and the subsequent mailing of W-2 forms
to Respondent by Petitioner's employers did not constitute the filing of a
return by Petitioner as required by Utah Code Ann. § 59-14A-48 (1953). Respondent does not have the burden of
preparing returns for Petitioner based on Petitioner's W-2 forms.
The
fact that Petitioner filed true returns as a result of writ of mandate
proceedings against him does not prevent Respondent from assessing penalty and
interest. Respondent petitioned for a
writ of mandate pursuant to Section 59-31-7 in order to compel the tax payer to
file returns. This section states that
"nothing in this section shall limit the remedies otherwise available to
the state tax commission under Title 59 or other laws of this state"
Section 59-31-7(2). The other remedies
include the assessment of penalty and interest. See Sections 59-14A-87, 59-14A-89, and 59-14A-92.
During
the hearing, Petitioner objected to the amount of the tax which Respondent
determined for XXXXX and XXXXX.
Petitioner did not raise this issue in his petition for redetermination,
but merely requested the "complete and immediate nullification of all
alleged 'deficiencies,' 'penalties,' and 'interest.'" Petitioner failed to
preserve the issue of the amount of the tax deficiency for the years XXXXX and
XXXXX. Therefore, the amount of tax
deficiency has become a final assessment pursuant to Section 59-14A-71. The only remaining issue is that of the
applicability of penalty and interest.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that the petition
for redetermination be denied.
The
audit deficiency, including tax, penalty and interest, for individual income
tax account No. XXXXX for the tax years XXXXX through XXXXX is hereby affirmed.
DATED
this 7 day of August, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner