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