89-1275 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW AND

v. : FINAL DECISION

: Appeal No. 89-1275

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH, )

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Informal Hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission. Present and representing the Petitioner was XXXXX.

The Petitioner filed her appeal requesting a refund of the interest assessed for the late payment of additional income tax that was due for the XXXXX income tax year.

Based on 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. During the tax year XXXXX, the Petitioner took a leave of absence from her job.

4. Because of the leave of absence, the Petitioner's employer was supposed to have given her two W-2 forms however, the Petitioner received only one W-2 form.

5. The Petitioner filed her XXXXX income tax return assuming the one W-2 form she received covered her entire period of employment.

6. The Petitioner was notified of the error by the Internal Revenue Service in XXXXX.

7. The Petitioner did not notify the Tax Commission of the change in her federal income tax return.

8. The Tax Commission made attempts to notify the Petitioner of the additional taxes due by way of a Notice and Demand sent on XXXXX and a Notice of Warrant on XXXXX.

9. The Petitioner testified that she did not receive any of the above mentioned notices. The Petitioner claims she was not aware of the additional taxes owed until XXXXX.

10. When the Petitioner became aware of the deficiency, she contacted the Commission requesting clarification and assistance.

11. The Petitioner did not receive a full explanation from the Commission until XXXXX.

CONCLUSIONS OF LAW

The Tax Commission is granted authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8)).

DECISION AND ORDER

In the present case, although the Petitioner testified that she did not receive the notices sent by the Commission and was not aware of the problem until XXXXX, the Petitioner had the obligation under §59-10-536(5A) to notify the Commission within 90 days after a change was made in her federal income tax return for XXXXX. This she failed to do.

Based on the foregoing, the Tax Commission finds that sufficient cause has not been shown to justify a waiver of the interest for the tax year in question. The Commission does find however, due to the delay in resolving the matter after it had been contacted by the Petitioner, interest is to be calculated to the date of XXXXX. It is so ordered.

DATED this 29th day of December, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner