INDIVIDUAL

86-0513

Signed 1/9/87

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0513

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 December 15, 1986, in the offices of the Utah State Tax Commission. Jerry E. Larrabee, Tax Appeals Supervisor, and David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented herself.

Petitioner timely filed a Utah individual income tax return for the tax year XXXXX on XXXXX, but mistakenly used the Federal Taxable Income instead of the Federal Adjusted Gross Income on the Utah form. Petitioner stated that the first notice she received was a Notice and Demand for Payment of Tax on XXXXX.

Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. Petitioner agrees to the additional tax and the penalty but objects to the assessment of interest because the Tax Commission waited so long to notify Petitioner of the error.

FINDINGS

The Tax Commission had three years from XXXXX, in which to assess an additional tax. Utah Code Ann. ? 59‑14A‑86(a) (1953). Respondent made the assessment within the time limits prescribed.

Interest was properly assessed on this account since the Tax Commission was denied the use of the money during this period. See Section 59‑14A‑87(a). Petitioner had the burden of proof to establish that Respondent assessed the interest in error. Petitioner failed to meet this burden of proof. DECISION AND ORDER

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

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

DATED this 9 day of January, 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

NOTICE: You have 30 days after the date on the Mailing Certificate to request a Formal Hearing.

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