BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
) Appeal No. 92-1229
: 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. Representing Petitioner by telephone were Petitioner and Petitioner's certified public accountant, 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. Petitioner was assessed a penalty and interest for under reporting taxes for the year in question.
4. Prior to XXXXX, Petitioner's professional service corporation had a fiscal year end of June.
5. In XXXXX, the Internal Revenue Service required all professional service corporations to change their year end to the calendar year, ending in December, unless good cause existed.
6. Petitioner's corporation asked the I.R.S. to allow it to have a September year end. Petitioner then filed using the September date.
7. In XXXXX, the I.R.S. audited Petitioner's corporation and disallowed the September year end. As a result of the audit, Petitioner owed additional personal income taxes for XXXXX as the year end was then adjusted.
8. The I.R.S. final audit report is dated XXXXX. Petitioner filed his amended return for XXXXX reflecting the change in taxable income with the state on XXXXX.
9. Petitioner's accountant, XXXXX, has handled Petitioner's taxes since approximately XXXXX.
10. Petitioner feels that the penalty is unjustified under the circumstances.
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
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the personal income taxes for XXXXX. Interest is not waived. It is so ordered.
DATED this 2nd day of October, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes