BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
: INFORMAL
DECISION
XXXXX, )
: 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.
FINDINGS
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.
ABSENT
R. H. Hansen Roger
O. Tew