92-1731 - Income

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: )

: INFORMAL DECISION

XXXXX, )

: Appeal No. 92-1731

)

: 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 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

In preparing her XXXXX Utah individual income tax return, Petitioner erroneously entered one half her federal adjusted gross income on line seven (7), as a deduction from income. Petitioner should instead have entered one half her federal tax liability. As a result of her error, she under paid her XXXXX state income tax liability by $$$$$. Commission staff discovered Petitioner's error by comparing her state and federal income tax returns. Petitioner paid the amount of additional tax immediately upon notification of the error.

A 10% late payment penalty of $$$$$ and interest have been assessed against Petitioner. Except for the year in question, Petitioner has properly filed and paid her state income tax liability.

DECISION AND ORDER

In view of Petitioner's good record of compliance with income tax requirements, the inadvertent nature of her error, and her prompt payment of the tax due, the Tax Commission finds sufficient cause does exist to waive the penalty associated with Petitioner's XXXXX income tax liability. As to the interest assessed in this matter, such an assessment is reasonable charge for the time value of money during the time such funds were held by Petitioner. The Commission finds no basis to waive interest in this case. It is so ordered.

DATED this 2nd day of October, 1992

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner