87-0059 & 87-0060 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

________________________________

XXXXX ) FINDINGS OF FACT,

Petitioner, : CONCLUSIONS OF LAW

v. : AND FINAL DECISION

: Appeal Nos. 87-0059

COLLECTION DIVISION OF THE : to 87-0060

UTAH STATE TAX COMMISSION : Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to a formal hearing from an informal decision rendered by the Utah State Tax Commission on XXXXX, which decision denied Petitioner's request for waiver of penalty and interest on individual income tax account No. XXXXX. A formal hearing was held on XXXXX in The offices 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

Petitioner was a client of XXXXX until XXXXX. XXXXX took over the practice of XXXXX in XXXXX. When preparing the XXXXX tax return for XXXXX, XXXXX discovered that the XXXXX returns were still in the file. Because of the resulting confusion, XXXXX did not timely file an extension for the tax year XXXXX. The XXXXX returns were filed approximately thirty days late.

CONCLUSIONS OF LAW

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

FINAL DECISION

Based on the foregoing, the Utah State Tax Commission hereby denies Petitioner's request for waiver of penalty and interest and affirms the informal decision.

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

DATED this 9 day of March, 1988.

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