90-1027 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

XXXXX

Petitioner, :

: INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 90-1027

UTAH STATE TAX COMMISSION, : Account No. XXXXX

Respondent. :

______________________________

STATEMENT OF CASE

Petitioner, XXXXX, appeals the assessment of a series of $$$$$ penalties for late payment of her individual income tax for each of the years XXXXX. Pursuant to the Utah Administrative Procedures Act and the rules of the Tax Commission, this matter is conducted as an informal adjudicatory proceeding. Since no hearing has been requested, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

During the years in question, Petitioner relied upon advice from the Internal Revenue Service in excluding certain income from her state and federal income tax returns. She was later advised by the IRS that the income should have been included, thereby increasing her state and federal tax liability for each year. As a result, the Petitioner was assessed for the unpaid federal and state income tax, interest and penalty for each year. She promptly paid the delinquent tax and interest, but petitioned for waiver of penalty. The IRS has waived imposition of penalty against Petitioner with respect to her federal income tax.

DECISION AND ORDER

It appears that the late payment penalties which are the subject matter of this appeal resulted from the Petitioner's reliance in good faith on advice given by the Internal Revenue Service. Under such circumstances, the Tax Commission finds reasonable cause to waive the late payment penalties which have been assessed against Petitioner. It is so ordered.

DATED this 23 day of August, 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