92-1292
Income
Signed 11/16/95
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX
:
Petitioner, ) ORDER
:
v. ) Appeal No. 92-1292
:
COLLECTION DIVISION OF THE ) Account
No. XXXXX
UTAH STATE TAX COMMISSION, :
)
Respondent. : Tax Type:
Income
_____________________________________
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard
the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call
was XXXXX. Present and representing Respondent
were XXXXX and XXXXX.
Petitioner is appealing penalties in the
amount of $$$$$ and interest of approximately $$$$$ which were assessed
relating to his income tax for the XXXXX tax year. At the hearing
Petitioner's representative explained that in XXXXX Petitioner, who is a
registered XXXXX, began to work and live on the XXXXX for the XXXXX. The XXXXX gave Petitioner a form to fill out
and sign for State of Utah individual income tax exemption. Petitioner's representative stated that
Petitioner relied on the information that he was given by his employers who
said Petitioner was exempt from state income tax because he was a registered
XXXXX working and living on the XXXXX.
In XXXXX the Auditing Division reviewed the account and determined the
exemption was incorrect because Petitioner was not a registered member of the
XXXXX and assessed the tax liability along with penalty and interest.
Respondent acknowledged that Petitioner
may have reasonably relied on the incorrect information given by his employer,
noting that the employer is a federal government agency which it would be
reasonable to assume had correct information on the tax liability of its XXXXX. Respondent recommended waiver of the penalty
because of this reliance, and the fact that as soon as Petitioner was notified
that he was not exempt he took steps to
correct the deficiency and has filed and paid correctly and timely since the
year in question.
Respondent recommended sustaining the
interest, explaining that interest is generally waived only in the event the
deficiency was caused by Tax Commission error.
There was no Tax Commission error in the facts presented.
APPLICABLE
LAW
The Tax Commission is granted the authority
to waive, reduce, or compromise penalties and interest upon a showing of
reasonable cause. (Utah Code Ann. '59-1-401(10).)
DECISION AND ORDER
Based upon the information presented at the
hearing, and the records of the Tax Commission, the Commission finds sufficient
cause has been shown to waive the penalty of $$$$$ relating to Petitioner's
income tax for XXXXX. Because the tax
deficiency was not the result of an error on the part of the Tax Commission or
Tax Commission employee, sufficient cause has not been shown to waive the
interest of approximately $$$$$.
This decision does not limit a party's right
to a Formal Hearing. However, this
Decision and Order will become the Final Decision and Order of the Commission
unless any party to this case files a written request within thirty (30) days
of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address
listed below and must include the Petitioner's name, address, and appeal
number:
Utah
State Tax Commission
Appeals
Division
210
North 1950 West
Salt
Lake City, Utah 84134
Failure to request a Formal Hearing will
preclude any further administrative action or appeal rights in this matter.
DATED this 16 day of November, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco Alice Shearer
Commissioner Commissioner
^^