91-0920 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re:                                                                           )

                                                                                    :           INFORMAL DECISION

XXXXX                                                                                  )           Appeal No. 91-0920

                                                                                    :           Account No. XXXXX

_____________________________________

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 issue before the Commission is the Petitioner's request for waiver of penalty associated with his XXXXX income tax liability.

            The Petitioner filed his XXXXX State and Federal income tax returns in a timely manner.  In completing the returns, he misread the wage information on one of his W-2 forms, mistaking a "9" for a "3", and consequently underreporting his income by $$$$$.  The Internal Revenue Service discovered the error, recomputed his federal tax liability, then added additional penalty and interest.  The IRS has subsequently waived its assessment of penalty.

            Based on information provided by the IRS, the Utah State Tax Commission's staff also recomputed the Petitioner's Utah income tax liability, resulting in an increase of $$$$$.  Penalty at the rate of 10% in the amount of $$$$$ was also assessed against the Petitioner, together with interest.

DECISION AND ORDER

            In view of the size of Petitioner's error and the fact that error was brought to the attention of the Tax Commission by the IRS, rather than by the Petitioner himself, the Tax Commission finds sufficient cause does not exist to waive the penalty assessed against Petitioner's income tax liability for XXXXX. It is so ordered.

            DATED this 3 day of September, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            S. Blaine Willes

Commissioner