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.
_________________________________
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