91-0981 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

: INFORMAL DECISION

XXXXX ) Appeal No. 91-0981

: 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. The Petitioner appeared on his own behalf.

FINDINGS

The Petitioner filed his XXXXX Utah individual income tax return in a timely manner, thereby establishing a tax liability of $$$$$. As $$$$$ had been withheld from earnings or prepaid, Petitioner claimed a refund of $$$$$.

Due to a data entry error, Commission staff erroneously reduced Petitioner's tax liability to $$$$$ and increased his refund to $$$$$.

After receiving and depositing the increased refund check, Petitioner asked his accountant to review his tax records to determine the reason for the discrepancy between the refund Petitioner had claimed and the refund he received. After investigation, Commission staff and Petitioner's accountant discovered the Commission's error and corrected the same. Petitioner repaid the amount that had been refunded in error.

Commission staff then assessed interest on the amount of the excess refund for the period it had been held by Petitioner.

DECISION AND ORDER

Petitioner asks the Commission to waive the interest which has been imposed against him as a result of the foregoing circumstances.

In considering Petitioner's request, the Commission notes that Petitioner correctly reported and paid his tax liability for the period in question. It was the Commission's error which resulted in the excess refund to Petitioner, an error which might not have been corrected if Petitioner had not stepped forward. Under such circumstances, imposition of interest against Petitioner is inequitable.

The Tax Commission finds sufficient cause does exist to waive the interest associated with the XXXXX income tax return. It is so ordered.

DATED this 20 day of November, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.<