91-1398 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

___________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-1398

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is income tax.

2. The period in question is XXXXX.

3. In approximately XXXXX an audit of the Petitioner's income tax account was undertaken by the Internal Revenue Service. That audit lasted approximately one year.

4. As a result of the IRS audit, it was determined by the IRS that unrealized income in the amount of $$$$$ to $$$$$ from a commodities account held by the Petitioner should have been included and reported for the XXXXX income tax year.

5. In approximately XXXXX the Petitioner received a statement from the Tax Commission indicating that the Tax Commission had received information from the IRS that changes to the Petitioner's XXXXX federal income tax had been made. As a result of those changes, additional tax in the amount of $$$$$ was assessed for the XXXXX income tax year. A penalty in the amount $$$$$ had also been imposed.

6. The Petitioner was not aware of the requirement that he notify the Tax Commission of the changes made to his XXXXX income tax return. The Petitioner was simply told by his accountant that he would receive a notice from the Tax Commission regarding the changes.

7. The Petitioner has paid the interest assessed on the late payment in the amount of approximately $$$$$.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann.59-1-401(8).)

If a change is made in a taxpayer's net income on his or her federal income tax return, either because the taxpayer has filed an amended return or because of an action by the federal government, the taxpayer must notify the Commission within 90 days after the final determination of such change. The taxpayer shall file a copy of the amended federal return and an amended state return which conforms to the changes on the federal return. (Utah Code Ann. 59-10-536(5)(a).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the XXXXX income tax year. It is so ordered.

DATED this 29th day of January, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner