BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
AUDITING
DIVISION OF THE ) Appeal No. 92-1249
UTAH STATE TAX
COMMISSION, :
) Account
No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. XXXXX, Presiding Officer, heard
the matter for and on behalf of the Commission. Petitioner XXXXX appeared on XXXXX own behalf. Respondent was represented by XXXXX,
Assistant Utah Attorney General.
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 individual income
tax.
2. The periods in question are XXXXX through
XXXXX.
3. Petitioner is self-employed as a XXXXX in
Utah County.
4. Petitioner did not file either federal or
Utah income tax returns for the years XXXXX through XXXXX.
5. The Internal Revenue Service determined
Petitioner's federal income tax liability for each of the years in question
based upon estimates of Petitioner's income from his XXXXX XXXXX. The I.R.S.
determinations of Petitioner's income and XXXXX federal income tax liability
remain in effect.
6. On XXXXX, Respondent assessed Petitioner
with individual income tax for each of the years in question. The assessment was based upon the I.R.S.'s
determination of Petitioner's taxable income.
Respondent also imposed 10% late filing penalty and a 10% late payment
penalty with respect to the tax found due for each year. Interest at the statutory rate of 12% per
annum was also assessed, accrued through XXXXX. The amounts of tax, penalty and interest so assessed are set
forth below:
Year Tax Penalty Interest
(To XXXXX)
XXXXX $ $$$$$$ $$$$$$ $$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
Totals $$$$$$$$$$$$$$$$$$$$$$
7. Petitioner filed a timely Petition For
Redetermination of the foregoing assessment with the Utah State Tax Commission.
8. Petitioner has not come forward with any
evidence to contradict either the I.R.S. determination of his taxable income,
or Respondent's determination of his Utah individual income tax liability.
CONCLUSIONS OF LAW
Utah
Code Ann. §59-10-104 imposes a tax on the state taxable income, as defined in
Sections59-10-111 and59-10-112, of every resident individual.
"Federal
taxable income" means taxable income as currently defined in Section 63,
Internal Revenue Code of 1986. (Utah Code Ann. §59-10-111).
"State
Taxable income" in the case of a resident individual means his federal
taxable income (as defined by Section 59-10-111) with the modifications,
subtractions, and adjustments provided in Section 59-10-114. (Utah Code Ann. §59-10-112).
DECISION AND ORDER
The
primary thrust of Petitioner's arguments in this matter is that XXXXX has not
federal taxable income, and therefore no state taxable income. However, the I.R.S. has determined that
Petitioner did, in fact, have taxable income for the years in question and has
assessed federal income tax upon such income.
The I.R.S. determination of Petitioner's federal taxable income for the
years in question remains in effect.
Furthermore, Petitioner has presented no evidence to contradict either the
I.R.S. determination of income or Respondent's assessment of state income
tax. As noted by the Utah Supreme Court
in Jensen v. State Tax Commission, filed July 23, 1992, No. 910151:
The Code imposes a tax
on a Utah resident's federal taxable income with certain adjustments. Utah Code Ann. §§59-14A-5, -11 (1974): §§59-10-104, -112 (1987). Federal taxable income is defined by the
Utah Code as taxable income under 26 U.S.C. §63. Utah Code Ann. §59-14A-10 (1974); §59-10-111 (1987). Section 63 of title 26 of the United States
Code, in conjunction with income from whatever source derived, including gross
income derived from a business and compensation for services, such as fees,
commission, and fringe benefits. 26
U.S.C. §§ 61(1), 61(2), 63 (1988).
Although
Petitioner contends the I.R.S. has exaggerated XXXXX income, XXXXX has not
provided a more accurate statement of XXXXX income, nor has XXXXX filed any
federal or state returns for the years in question.
Based
on the foregoing, the Commission concludes Petitioner has failed to demonstrate
that Respondent's assessment in this matter is incorrect. The Commission therefore affirms
Respondent's assessment with respect to each of the years in question. It is so ordered.
DATED
this 3rd day of February, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner