89-1451 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

:

: Appeal No. 89-1451

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION :

: 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 and representing the Petitioner was 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. Petitioner originally filed his income tax return for XXXXX in a timely manner. At that time he had taken deductions for certain bad debts in the amount of $$$$$.

4. Sometime after the due date for the filing of the returns for XXXXX, the Petitioner was audited by the IRS. Petitioner cannot remember the date when the audit occurred.

5. As a result of the audit by the IRS certain deductions which were taken by the Petitioner on his XXXXX income tax return were denied which in turn increased his tax obligations.

6. On XXXXX, Petitioner was notified by the Commission that information provided from the IRS to the Tax Commission resulted in adjustments to the Petitioner's XXXXX income tax return.

7. As a result of those revisions, additional tax in the amount of $$$$$ was due. Interest in the amount of $$$$$ was assessed.

8. Petitioner requested a waiver of the interest. It was the Petitioner's position that the XXXXX income tax return was filed in good faith and the Petitioner had no intent to defraud the Tax Commission for taxes due.

CONCLUSIONS OF LAW

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

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause does not exist which would justify a reduction or waiver of the interest in question. Therefore, the Petitioner's request to waive the interest associated with the XXXXX income tax return is denied. It is so ordered.

DATED this 21st day of March, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner