BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
: INFORMAL
DECISION
XXXXX )
: Appeal No.
92-1207
)
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
proceedings. No hearing was requested,
therefore, this decision is based upon information contained in the Tax
Commission's file.
FINDINGS
Petitioner
filed his individual Utah income tax return for tax year XXXXX on XXXXX,
establishing a tax liability of $$$$$.
He paid the tax liability at that time.
The
Internal Revenue Service subsequently reviewed Petitioner's XXXXX federal
income tax return and proposed a substantial increase in his federal tax
liability. On XXXXX, Petitioner agreed
to a much smaller increase to his federal liability, in the amount of $$$$$.
Based
on information received from the Internal Revenue Service, Petitioner's XXXXX
Utah income tax liability was also audited.
It was increased to $$$$$, then reduced to $$$$$. As Petitioner had already paid $$$$$,
additional tax of $$$$$ remained due.
Petitioner submitted payment of that amount, together with estimated
interest of $$$$$ and estimated penalty of $$$$$. However, Commission records indicate that a late payment penalty
in the amount of $$$$$ and interest of $$$$$ was assessed against Petitioner.
DECISION AND ORDER
The
amount of Petitioner's tax liability to Utah for XXXXX has been subject to
confusion. Petitioner's liability has
now been determined to be $$$$$, only slightly more than the tax originally
reported and paid by Petitioner. Other
than this slight underreporting of tax for XXXXX, Petitioner has properly
reported and paid his tax liability in other years. The Tax Commission therefore finds sufficient cause to waive the
penalties assessed against Petitioner's XXXXX income tax liability.
It
appears to the Commission that the amount of interest assessed against
Petitioner has been incorrectly computed.
The Collection Division is instructed to redetermine the amount of
interest now due from Petitioner, taking into account the Commission's decision
to waive penalty in this matter. It is
so ordered.
DATED
this 27th day of May, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen