BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: : INFORMAL DECISION
XXXXX ) Appeal No. 91-0904
: Account
No. XXXXX
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STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
proceedings. No hearing was requested,
therefore, this decision is based upon information contained in the Tax
Commission's file.
FINDINGS
The
Petitioner timely filed and timely paid his XXXXX individual income tax.
At
a later point in time the former employer of the Petitioner Texas Instruments,
sent out an incorrect duplicate XXXXX.
The Internal Revenue Service changed the income tax return of the
Petitioner to include the incorrect income from the 1099R and they also
corrected a mathematical computation error which had been made on the
Petitioner's tax return. The matter was
finally resolved with the Internal Revenue Service by reducing the income back
to the amount shown on the original 1099R, but increasing the income by an
amount of $$$$$ for the computational error.
The
State Tax Commission adjusted for the original change which increased the
Petitioner's income, but did not adjust for the change which reduced the
Petitioner's income from the original audit.
The letter notifying the Petitioner of this change was sent to his
former residence and was not forwarded to him until the penalty had been
imposed in the amount of $$$$$ for failure to timely pay the additional tax
due. The Petitioner promptly paid the
tax after receiving notification of the additional tax due.
The
Internal Revenue Service ultimately waived all penalties for all transactions.
DECISION AND ORDER
Based
upon the foregoing the Commission finds that reasonable cause does exist to
waive the penalty, but reasonable cause does not exist to waive the interest.
It
is therefore ordered that the Petitioner's request to waive the penalty is granted,
but the request to waive the interest is denied. It is so ordered.
DATED
this 19 day of July, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner