92-1825 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1825

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Petitioner was present and represented himself. Present and representing the Auditing Division was XXXXX.

Based upon the evidence and testimony 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 state individual income tax

return on time and requested a $$$$$ refund.

4. The Tax Commission sent Petitioner a letter, notifying him that he had filed in error and that his true refund amount was nearly $$$$$.

5. Upon receiving the larger refund amount, Petitioner testified he called the Tax Commission to determine if the amount was indeed correct. When he was told it was correct, he cashed the check.

6. In late XXXXX, the Tax Commission notified him that the XXXXX refund was in error and that the refund should have been $$$$$.

7. The Tax Commission also assessed Petitioner a ten percent negligence penalty plus interest.

8. The apparent reason for the mix-up in XXXXX is that Petitioner failed to enter his federal adjusted gross income amount on his state return.

9. Respondent explained that the computer automatically back calculated Petitioner's return, causing the incorrect refund.

10. Notation on Petitioner's account indicates that the return should never have been processed without all of the information and that the return should have been rejected and sent back to Petitioner to complete.

11. The Tax Commission previously waived the penalty.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. Section 59-1-401(8).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the interest assessments associated with the XXXXX personal income tax return. It is so ordered.

DATED this 12TH day of March, 1993.

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