91-1665 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-1665

: Account No. XXXXX

: Tax Type: Penalty/Int.

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Alan Hennebold, 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 individual income tax.

2. The period in question is XXXXX

3. During XXXXX, Petitioner purchased a residence in Utah, which he rented to a tenant while he sold his residence in XXXXX. Petitioner actually moved to Utah during XXXXX.

4. In preparing Petitioner's income tax returns for XXXXX, Petitioner's accountant in XXXXX included Petitioner's Utah rental income as part of his XXXXX income. Petitioner therefore paid income tax to XXXXX on the rental income. He did not file a Utah income tax return for XXXXX until he moved to Utah and consulted a Utah accountant. At that time, he filed a Utah non-resident return for XXXXX which established tax liability of XXXXX. Because the return had not been filed or paid when due, penalties of $$$$$, a legal fee of $$$$$ and interest were assessed against Petitioner.

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).)

DECISION AND ORDER

Petitioner asks the Commission to waive late filing and late payment penalties imposed with respect to his XXXXX tax liability. Petitioner's delay in filing and paying his XXXXX income tax was an isolated incident, occurring despite the fact Petitioner had relied upon professional advice. Furthermore, Petitioner corrected his error prior to Commission intervention.

Based on the foregoing, the Commission finds that reasonable cause exists to waive the penalties associated with the Petitioner's XXXXX individual income tax liability.

Interest assessed against Petitioner will be recomputed in accordance with this decision. It is so ordered.

DATED this 25 day of March, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner