92-1777 - Income

 

BEFORE THE UTAH STATE TAX COMMISSION

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In Re:                                                                           :

XXXXX                                                                                  )

                                                                                    :

                                                                                    :

                                                                                    :           INFORMAL DECISION

                                                                                    :           Appeal No. 92-1777

                                                                                    :           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

            Petitioner filed his XXXXX, XXXXX and XXXXX personal state income tax returns on time.  In filing, however, Petitioner mistakenly took an exemption for which he was ineligible.

            In his letter, Petitioner explains that in XXXXX he realized the error.

            By XXXXX, the Tax Commission notified him of the problem and Petitioner then paid the additional tax owing for XXXXX and XXXXX.  The Commission apparently discovered the same error in Petitioner's XXXXX return and notified him of the audit change in XXXXX.  Petitioner did not respond.  A second notice was sent in XXXXX to which Petitioner did acknowledge with payment.  Petitioner states he did not receive the first notice of audit change in XXXXX and feels that the Commission waited too long in sending a follow-up notice.  For this reason, Petitioner is seeking a waiver of the penalty and interest assessments.

DECISION AND ORDER

            Penalty and interest assessments are not waived in this case. Petitioner himself knew he was ineligible for the exemption as early as XXXXX and failed to contact the Tax Commission then.  Further, Petitioner did pay additional taxes for XXXXX and XXXXX in XXXXX after being contacted by the Tax Commission and, apparently, the I.R.S. for this disallowed exemption.  Petitioner should have filed an amended return for all years as soon as the mistake was known to him in XXXXX.  The penalty and interest assessments associated with the individual income tax due on the year XXXXX are not waived. It is so ordered.

            DATED this 13 day of January, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.