89-1233 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FORMAL DECISION

:

: Appeal No. 89-1233

COLLECTION DIVISION OF THE :

STATEMENT COMMISSION OF UTAH )

: Account No. XXXXX

Respondent :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission. Present by telephone and representing the Petitioner were XXXXX, XXXXX and XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is income tax.

2. The period in question is XXXXX,

3. The Petitioner timely filed his income tax return for the tax year XXXXX. At that time he reported no tax owning.

4. Due to a sales tax audit conducted by the Tax Commission in XXXXX, there was assessed additional state income tax in the amount of $$$$$.

5. Had the Petitioner realized in a timely fashion that additional income tax was owed for the period in question, the Petitioner could have filed an amended XXXXX return showing a loss carried forward from XXXXX which would in effect show him with no income for XXXXX. Because of the running of the time period in which an amended return could be filed, that was not done.

6. The Petitioner did, however, amend his XXXXX return based upon a XXXXX loss carryback. Petitioner was informed by the Tax Commission that such a procedure would only be accepted if the Internal Revenue Service also accepted it. The Internal Revenue Service did not accept the amendment to the XXXXX return because the time period had run.

7. As a result of the additional tax liability of XXXXX the Petitioner was assessed a penalty in the amount of $$$$$.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. Utah Code Ann. 59-1-401(a).

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient evidence has not been shown which would justify a waiver or reduction of the penalties and interest associated with the XXXXX income tax year. Therefore, the Petitioner's request to waive the penalties and interest for that year is denied. It is so ordered.

DATED this 27th day of February, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner