BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: )
: INFORMAL
DECISION
XXXXX &
XXXXX, )
: Appeal No.
92-1828
)
: 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
Petitioners
timely filed their XXXXX personal income tax return and requested a refund of
over $$$$$. One month after they filed
their return, the Tax Commission notified them that an error had been made on
their return and that their refund would be approximately $$$$$. Commission records substantiate this
statement.
Petitioners,
at this time, cannot recall what the nature of the error was, only that they
understood they had made a mistake of some sort.
Two
and a half years later, the Tax Commission discovered another error on
Petitioners' return. Petitioners had
failed to add back state tax from the itemized deductions. Whether or not this second error is related
to the first error is not known.
Petitioners
paid the outstanding balance within ninety days of the first audit notice.
This
second adjustment increased Petitioners' state income tax liability $$$$$. Petitioners were penalized ten percent
($$$$$) for negligence. Another $$$$$
was assessed for failure to pay.
Interest was also assessed.
The
Tax Commission previously waived the ten percent penalty.
Petitioners
contend that the Tax Commission should have discovered all errors the first
time it examined their return in XXXXX and recalculated their refund amount.
DECISION AND ORDER
The
Tax Commission finds sufficient cause does exist to waive the penalty and
interest associated with the XXXXX personal income tax. It is so ordered.
DATED
this 7th day of January, 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