BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
AUDITING
DIVISION OF THE : Appeal No. 87-2143
UTAH STATE TAX COMMISSION, : Acct.
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from audit reports prepared by
Respondent for 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 Tax Commission.
XXXXX represented himself. XXXXX
represented the Respondent.
Petitioner
specifically questioned an $$$$$ adjustment computed by Respondent for
XXXXX. This amount represents $$$$$ in
taxes. Petitioner stated that he
attempted to resolve this matter with XXXXX, but still has not heard from
XXXXX. Petitioner stated that the
figures on his XXXXX Utah return do not match the figures set forth on the
report of Utah individual income tax audit changes, form TC-302. Petitioner also questioned the assessment of
penalty.
Respondent
stated that the Tax Commission agent who completed form TC-302 apparently
derived his figures from the IRS audit and recommended that Petitioner go first
to the IRS to resolve any discrepancies in the IRS audit.
FINDINGS
The
IRS audit was prepared on XXXXX. The
statute of limitations may have run, preventing Petitioner from challenging the
IRS audit. However, Petitioner has timely filed a petition for redetermination
with the state Tax Commission. The Tax
Commission finds that Petitioner has presented sufficient evidence to warrant a
reduction of $$$$$ in Petitioner's XXXXX taxes.
A
Tax Commission letter dated XXXXX and signed by XXXXX, Managing Auditor, states
that the auditor who prepared the audit assessed interest but no penalty; the
computerized system automatically assessed a $50 penalty for each of the three
years in question because a payment for the audit had not arrived within the
required 30 day period. Since the Tax
Commission finds that Petitioner timely filed a petition for redetermination,
the late payment penalty is inappropriate.
DECISION AND ORDER
Based
on the foregoing, it is the decision and order of the Utah State Tax Commission
that the $$$$$ adjustment to Petitioner's income for the tax year XXXXX be
abated.
All
penalties for XXXXX are hereby abated.
The
Auditing Division of the Utah State Tax Commission is hereby ordered to adjust
its records in accordance with this decision.
DATED
this 25 day of August, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner