BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX, ) AND FINAL DECISION
) Appeal No. 92-1631
: 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. Petitioner was present and represented himself.
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 XXXXX.
3. Petitioner was employed by XXXXX XXXXX as a real estate agent in XXXXX.
4. He timely filed and paid his state personal income taxes.
5. In the spring of XXXXX, Petitioner learned that the Internal Revenue Service was auditing XXXXX XXXXX.
6. As a result of the federal audit, the I.R.S. found that XXXXX had significant accounting errors, affecting its employees' compensation amounts.
7. Petitioner's federal taxable income for XXXXX was increased.
8. Petitioner contacted XXXXX's accountant before paying the I.R.S. and the state because he wanted to know if XXXXX would be contesting the audit.
9. Petitioner apparently never has fully understood why his federal taxable income increased, only that the I.R.S. had disallowed some manner in which XXXXX had calculated his gross salary.
10. Petitioner is requesting a waiver of the $$$$$ penalty and interest, claiming he is more or less an innocent third party.
11. The penalty assessment was added because Petitioner did not pay his increased tax liability within ninety days of the State's notice of audit change. Neither did Petitioner contact the Tax Commission after the I.R.S. adjusted his XXXXX taxable income.
CONCLUSIONS OF LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the $$$$$ penalty associated with the personal income tax due on the year XXXXX. Interest is not waived. It is so ordered.
DATED this 21st day of December, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes