BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
: Appeal No.
92-0320
__________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing by
telephone on XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Representing the Petitioners 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 personal income tax.
2. The period in question is the year XXXXX.
3. Petitioners timely filed and paid their
XXXXX personal income tax return.
4. On XXXXX, the Tax Commission sent
Petitioners a refund in the amount of $$$$$.
5. Petitioners had not requested a refund.
6. On XXXXX, a notice and demand for payment of
taxes in the amount of $$$$$ was sent to Petitioners.
7. Petitioners did not understand how they
could owe taxes for XXXXX when the Tax Commission sent them a refund.
8. The Tax Commission sent another delinquent
notice at the end of XXXXX.
9. The Tax Commission sent another delinquent
notice in XXXXX and again in XXXXX.
10. Petitioners called the Tax Commission and
were told they had to return the refund amount. No explanation was given.
11. XXXXX went to the Tax Commission in XXXXX to
resolve the matter and spoke with XXXXX in correspondence.
12. Petitioners paid $$$$$ on XXXXX.
13. As it turns out, Petitioners' son is also
named XXXXX. He prepaid $$$$$ in personal
income taxes in XXXXX.
14. This amount was erroneously credited to
Petitioners' account.
15. On XXXXX, the Tax Commission transferred
$$$$$ from Petitioners' account to the
son's account, leaving Petitioners $$$$$ short due to the refund.
16. The $$$$$ penalty that had been assessed
against Petitioners was waived by the Tax Commission previously.
17. Petitioner are requesting a waiver of the
interest.
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
Petitioners
contend that they should not be charged interest when it was not their fault
that funds were mistakenly credited to their account. They claim that the notices they received were nothing more than
statements of delinquency without any explanation for the demand for payment of
taxes. Petitioners felt that the Tax
Commission was in error because they knew they had paid their taxes and that
they had inadvertently overpaid as evidenced by the refund.
In
this instance, Petitioners did contact the Tax Commission to obtain an
explanation for the delinquency notices.
It was not until XXXXX went to the Commission in XXXXX that the Tax Commission
explained to him the nature of the mix-up.
XXXXX paid the refund amount when he learned why the notices had been
coming to him.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the interest as well as the penalties
associated with the Petitioners XXXXX personal income taxes. It is so ordered.
DATED
this 1st day of July, 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