88-2480 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

:

: Appeal No. 88-2480

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, :

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on XXXXX. James E. Harward, Presiding Officer, heard the matter for and in behalf of the Tax Commission. XXXXX appeared representing the Petitioner.

Based upon the recommendation of the Presiding Officer and the evidence and arguments presented at the hearing the Tax Commission makes its:

FINDINGS OF FACT

1. The tax in question is income tax.

2. The period in question is XXXXX.

3. The Petitioner filed the XXXXX income tax on XXXXX. A penalty was assessed of $$$$$.

4. Petitioner requested that the penalty be waived on the grounds that on the due date of the return the Petitioner's accountant presented the returns to the Petitioner. On reviewing the returns it was discovered that the accountant was not apprised of the full circumstances relating to the foreclosure of the XXXXX supply business and the subsequent repossession and liquidation in XXXXX. The returns that were prepared were wrong and needed to be recomputed and resubmitted. Ultimately the returns were prepared and filed on XXXXX.

5. Petitioner was unable to file a proper return on the due date. The Petitioner relied upon a competent tax advisor. However, the tax advisor did not fully understand or comprehend the transactions involved in XXXXX resulting in the necessity of redoing the returns.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce or abate penalties and interest after making a record of its reasons. (Utah Code Ann. §59-1-401(8).)

DECISION AND ORDER

The Tax Commission finds Sufficient grounds to grant the request of the Petitioner and waive the penalty associated with the XXXXX income tax year. It is so ordered.

DATED this 22 day of June, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R.H Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner