90-1387 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX,

Petitioners, :

v. : INFORMAL DECISION

:

: Appeal No. 90-1387

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 hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioners was XXXXX.

The Petitioners filed their XXXXX income tax return in a timely manner, however, the Petitioners did not at that time pay the $$$$$ in tax which was due. As a result, a penalty in the amount of $$$$$ was originally assessed. The penalty was subsequently reduced by $$$$$ as a result of Petitioners' request for waiver.

The Petitioners testified that as a result of an audit for prior years, the Petitioners were due a refund of $$$$$. In his opinion, the Petitioner testified that any penalties and interest assessed based on the tax due for XXXXX of $$$$$ should have only been assessed on the $$$$$ difference between the amount they were due by way of refund and the taxes for that year due.

For the tax year XXXXX, Petitioners testified that their original return showed a liability of $$$$$ which was not included with the return. As a result of an amendment to their return, the Petitioners' tax liability was reduced by $$$$$. It was the Petitioners' contention that any penalty imposed should only be imposed for the $$$$$ in taxes which were due.

On XXXXX, as a result of a waiver request, the penalty assessed to the Petitioners' account for XXXXX was reduced by $$$$$, leaving a balance of $$$$$.

DECISION AND ORDER

With respect to the XXXXX and XXXXX tax years, the Tax Commission finds that sufficient evidence has not been shown which would justify the further reduction of the penalties imposed for those years. It is so ordered.

DATED this 12TH day of SEPTEMBER, 1990.