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.
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
Joe B. Pacheco S. Blaine Willes