BEFORE THE UTAH STATE TAX
COMMISSION
__________________________________
In Re: )
:
XXXXX &
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1837
: 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. Present and representing the Petitioners was
XXXXX. 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 personal income tax.
2. The period in question is the year XXXXX.
3. Petitioners timely filed their XXXXX state
income tax return. They received a
refund of over $$$$$ as they requested.
4. After comparing information with the
Internal Revenue Service in XXXXX, the Tax Commission discovered that
Petitioners had overstated the standard deduction by $$$$$.
5. In XXXXX, Petitioners were sent a letter
notifying them of the audit change for XXXXX and demanding payment.
6. A ten percent negligence penalty for failure
to accurately report was assessed. This
penalty was later waived.
7. Petitioners paid the tax deficiency in
XXXXX, thirty-seven days after the first notice. Petitioners were assessed an additional $$$$$ for late payment.
8. Petitioners are seeking a waiver of the
remaining $$$$$ penalty and interest assessment.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.
§59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the $$$$$ penalty associated with the
personal income tax due on the year XXXXX.
Interest is not waived in that Petitioners had use of state money prior
to repayment.
By
way of explanation, the Tax Commission has three years to audit a taxpayer's
filed personal income tax return. While
Petitioners would have liked to have been notified earlier of the error, the
Tax Commission has thousands of returns and does not specifically check them
individually as they are filed. In this
case, information from the I.R.S. caused Petitioner's return to be pulled.
DATED
this 12th day of March, 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