92-1726 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

: INFORMAL DECISION

XXXXX, )

: Appeal No. 92-1726

)

: Account No. XXXXX

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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

The Petitioners timely filed their XXXXX income tax return. In doing so however, they used the short form (TC-40S) instead of the appropriate long form (TC-40).

As filed by the Petitioners, the return showed a tax due in the amount of $$$$$ and withholding in the amount of $$$$$. The Petitioners submitted a check in the amount of $$$$$ with their return to cover the balance due.

Once received by the Operations Division, the return was "corrected". The "corrections" determined that the Petitioners' taxable income was $$$$$ with a computed tax of $$$$$. This generated a refund in the amount of $$$$$ which was erroneously paid to the Petitioners.

As a result of information received from the Internal Revenue Service, the erroneous refund was discovered and the Petitioners were notified by way of a Statutory Notice of Audit Change dated $$$$$ that the correct amount of tax due was $$$$$ and that the Petitioners were also obligated to repay the amount previously erroneously refunded to them as well as a penalty in the amount of $$$$$ and interest in the amount of $$$$$ as calculated to XXXXX.

By way of subsequent Commission action, the penalty imposed was waived. The Petitioners seek a waiver of the interest assessed.

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the interest associated with the XXXXX income tax year. It is so ordered.

DATED this 28th day of September, 1992.

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