92-1739 - Income

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

: FINDINGS OF FACT,

Petitioner, ) CONCLUSIONS OF LAW,

: AND FINAL DECISION

v. )

:

AUDITING DIVISION OF THE ) Appeal No. 92-1739

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter was heard before the Utah State Tax Commission on XXXXX. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Petitioner represented himself by telephone. XXXXX, Assistant Utah Attorney General, represented Respondent.

Based upon the testimony and evidence presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is individual income tax.

2. The period in question is the year XXXXX.

3. Petitioner filed his XXXXX Utah Resident Short Form TC-40 personal income tax return on time and received a refund therefrom.

4. Then, in XXXXX, the Tax Commission audited Petitioner's return and discovered that Petitioner had taken a $$$$$ standard deduction as a single taxpayer instead of the proper deduction amount of $$$$$.

5. The Auditing Division then notified Petitioner and requested the additional amount due plus interest. No penalty was assessed.

6. Petitioner testified that he relied upon the Tax Commission's XXXXX instruction Booklet L in preparing his 1989 return. In the booklet, as the Auditing Division concedes, there was a misprint which directed Petitioner to take the $$$$$ deduction and not a $$$$$ deduction.

7. While Petitioner wants to pay his fair share of taxes, he does not think that the Tax Commission should be able to pursue him for additional taxes and interest more than two years after the filing in question.

CONCLUSIONS OF LAW

Relevant to this case is Utah Code Ann. §59-10-536(1) wherein it states:

Except as otherwise provided in this section, the amount of any tax imposed by this chapter shall be assessed within three years after the return was filed (whether or not such return was filed on or after the date prescribed)...

Further, upon reasonable cause shown, the Commission may waive, reduce, or compromise any of the penalties or interest imposed under this part. (Utah Code Ann. §59-1-401(8).)

DECISION

Based upon the foregoing, the Tax Commission finds that Petitioner is liable for the additional tax assessment as this assessment reflects the true amount of taxes Petitioner owed for XXXXX. The interest amount is waived. It is so ordered.

DATED this 25th day of June, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner