BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: :
XXXXX )
:
:
: INFORMAL
DECISION
: Appeal No.
92-1777
: 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, 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.