BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, :
:
v. : INFORMAL DECISION
: Appeal No.
89-1438
COLLECTION
DIVISION OF THE :
STATE TAX
COMMISSION OF UTAH, )
: Account
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 informal
proceedings. No hearing was requested,
therefore, the matter was conducted by review of the file before the Tax
Commission.
In
XXXXX the Petitioner was notified by the Internal Revenue Service (IRS) that a
mathematical error had been made in the preparation of his XXXXX income tax
return, and that additional taxes for that period of time were owed. The Petitioner
paid the additional tax to the IRS, however, did not notify the Commission of
the change.
In
XXXXX the Petitioner received a notice from the Commission that additional
taxes were due for the XXXXX income tax year.
Petitioner alleges he spoke with a representative of the Commission,
whose name he did not recall, and was told that the letter was sent in error
and that no tax was owed. In XXXXX,
Petitioner received another statement from the Commission indicating that
additional taxes were owed. The
Petitioner then spoke with another representative of the Commission who
verified that additional taxes were due.
Interest
in the amount of $$$$$ was assessed on the amount of taxes that were not paid
when due. However, even if the facts
alleged by the Petitioner are true, he had the use of the amount of taxes for
the time period involved and the State of Utah was deprived of the use of the
money for that time period. This is
interest on the use of the money and is not a penalty.
DECISION AND ORDER
The
Tax Commission finds sufficient cause has not been shown to waive the interest
associated with the XXXXX income tax year.
Therefore, the Petitioner's request to waive the interest for that
period is denied.
DATED
this 26th day of December, 1989.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
G. Blaine
Davis