BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL DECISION
: Appeal No. 89-1438
COLLECTION DIVISION OF THE :
STATE TAX COMMISSION OF UTAH, )
: Account No. XXXXX
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