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
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner