87-0058 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

__________________________________

XXXXX

Petitioner, : FINDINGS OF FACTS,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-0058

UTAH STATE TAX COMMISSION, :

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to a formal hearing from an informal decision rendered by the Utah Stale Tax Commission on XXXXX, which decision denied Petitioner's request for waiver of penalty on individual income tax account No. XXXXX. A formal hearing was held on XXXXX in the office of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Petitioner did not dispute the findings as set forth in the informal decision but stated that the standard of the Tax Commission for determining reasonable cause for failure to file is too stringent. The IRS is much more lenient. Petitioner suggested that if a less stringent standard were used by the Tax Commission, the relationship between the practitioners and the state would be enhanced.

FINDINGS OF FACT

XXXXX was a client of XXXXX, Accountant, who prepared Petitioner's return for XXXXX but never filed it. XXXXX took over XXXXX practice and found the XXXXX return in the file when he prepared the XXXXX return.

CONCLUSIONS OF LAW

Respondent properly assessed penalty and interest in this matter. The return was, in fact, filed late. The Tax Commission finds no basis on which to waive the penalty in this matter.

FINAL DECISION

Based on the foregoing, it is the Decision of the Utah State Tax Commission that Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for XXXXX be denied.

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

DATED this 9 day of March, 1988.