91-1998 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-1998

: Account No. XXXXX

_____________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, C.P.A.

Based upon the evidence and testimony represented 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 are the years XXXXX and XXXXX.

3. The Internal Revenue Service adjusted Petitioner' s income for the years in question because of a change in the amount allowed for a charitable contribution.

4. Petitioner appealed the I.R.S.'s adjustments.

5. The Internal Revenue Service sent its notice of final determination in mid-XXXXX to Petitioner's certified public account, XXXXX.

6. Petitioner failed to inform the Tax Commission of the income adjustments by the Internal Revenue Service within 90 days.

7. As a result, Petitioner was assessed a penalty in the amount of $$$$$ for XXXXX (10 percent of the newly assessed tax deficiency) plus interest. He was also assessed a penalty in the amount of $$$$$ for XXXXX (10 percent of the newly assessed tax deficiency) plus interest.

8. XXXXX acknowledged that the failure to report the new figures within 90 days was an oversight on his part.

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. (Utah Code Ann. 5910-536(5)(a)-)

DECISION AND ORDER

Petitioner's accountant readily admitted that it was his error that caused Petitioner to miss the 90-day deadline. In light thereof, the Tax Commission cannot waive the penalties and interest associated with the years XXXXX and XXXXX. Petitioner is not without recourse, however, as the accountant is the person who caused Petitioner to suffer additional penalties. It is so ordered.

DATED this 13 day of February, 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