87-2315 - Income

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-2315

UTAH STATE TAX COMMISSION, : 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 on individual income tax account No. XXXXX for the tax years 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 the Petitioner. Petitioner is over seventy years old and lost her husband in XXXXX. Petitioner was told at that time by her attorney and her insurance company that the annuity which she received was tax exempt because the annuity was passive income. Petitioner's current accountant advised her of the responsibility to pay taxes. Petitioner paid the taxes as soon as she found this out and requests a waiver of the penalty because a good faith effort has been made.

FINDINGS

Penalty and interest were properly assessed on this account. The returns were, in fact, filed late. However, the Tax Commission, in its discretion hereby waives the penalty based on Petitioner's good faith efforts to comply and because Petitioner had been misinformed by professionals who should have known the law.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that penalty on individual income tax account No. XXXXX for the tax years XXXXX be waived. The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 5 day of May, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner