BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 92-1719
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.
Petitioner filed his XXXXX state and federal individual income tax returns in a timely manner, from Belfast, Northern Ireland. The Internal Revenue Service detected an error in Petitioner's federal tax return, corrected the error, mailed notice of the correction to Petitioner, and reduced his federal income tax refund accordingly. However, all the documentation was mailed to Petitioner's home address, while he was still in Northern Ireland. Petitioner's daughter deposited the refund check on Petitioner's behalf, without his knowledge of the corrections made by the I.R.S. Consequently, Petitioner did not advise the Utah State Tax Commission of the change to his federal adjusted gross income for the year in question. The Commission instead learned of the change from the I.R.S., and recomputed Petitioner's state income tax liability accordingly. As a result, on XXXXX his income tax liability increased from $$$$$ to $$$$$. Petitioner paid the additional tax immediately upon notification. A $$$$$ penalty was imposed, but has now been abated. Petitioner now seeks waiver of interest.
DECISION AND ORDER
The Commission recognizes Petitioner has acted promptly and in good faith in this matter. For that reason, all penalties have been abated. However, the assessment of interest is merely a reasonable charge representing the time value of the unpaid tax during the time such tax funds were held by Petitioner. Consequently, the Tax Commission finds sufficient cause does not exist to waive the interest associated with Petitioner's XXXXX individual income tax. It is so ordered.
DATED this 13th day of October, 1992
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew