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
_________________________________
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