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