90-0129 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

: Appeal No. 90-0129

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 on behalf of the Tax Commission. Present and representing the Petitioner were 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 periods in question are XXXXX.

3. In the latter part of XXXXX, Petitioner was notified by the IRS that certain deductions he had taken on his XXXXX income tax returns were not allowed.

4. On XXXXX, the Petitioner received notice from the Tax Commission that as a result of the adjustments to his federal income tax returns, adjustments were also necessary to his state income tax returns. Those adjustments resulted in an increase in the amount of tax due for XXXXX in the amount of $$$$$ and an increase in the amount of tax due for XXXXX in the amount of $$$$$.

5. The Petitioner testified that he contacted a Commission representative on XXXXX, and was told that payment could be delayed until XXXXX.

6. On XXXXX, the Petitioner met with another representative of the Commission and was assured that no additional penalties or interest would be assessed for delaying his payment.

7. On XXXXX, the Petitioner paid the deficiency, and at that time made a request for waiver of the penalty and interest assessed. Petitioner did not receive a response to his request until XXXXX, at which time he received a notice of warrant and demand for payment of taxes.

8. The Petitioner did not notify the Commission of the changes made to his federal income tax return for the years in question. The Petitioner was under the impression, after speaking with IRS representatives, that such matters would be taken care of without any action on his part.

9. As a result of the deficiency assessed for the years in question, penalties in the amount of $$$$$ or XXXXX, and $$$$$ for XXXXX were assessed, along with interest calculated from XXXXX.

10. The penalty for each of the years in question was waived by Commission action. The Petitioner requests a waiver of the interest associated with those periods.

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(8)).

DECISION AND ORDER

In the present case, the Tax Commission finds sufficient cause does not exist to waive the interest associated with the XXXXX and XXXXX income tax years. It is so ordered.

DATED this 6 day of September, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner