92-1883 - Income

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: FINDINGS OF FACT,

XXXXX, ) CONCLUSIONS OF LAW,

: AND FINAL DECISION

)

: Appeal No. 92-1883

)

: Account No. XXXXX

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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 Petitioner was Petitioner's secretary, 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 timely filed and paid his XXXXX state personal income taxes.

4. Then, in XXXXX, the Tax Commission audited Petitioner's XXXXX return based upon an Internal Revenue Service audit for the same year.

5. According to Petitioner's secretary, the I.R.S. had denied a portion of Petitioner's business expenses.

6. The Tax Commission sent Petitioner a letter regarding the audit assessment on XXXXX. Included with the additional tax amount owing was a ten percent negligence penalty and interest.

7. Ms. XXXXX recalls mailing this additional assessment amount on or about XXXXX. She cannot understand why the Tax Commission did not receive the check until XXXXX, especially when Petitioner's office is four blocks from the Tax Commission.

8. Petitioner later learned that the Tax Commission had assessed Petitioner a second ten percent penalty. Petitioner is requesting that this second penalty be abated.

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 second ten percent penalty assessed Petitioner's individual income tax account for the year XXXXX. The interest is not waived. It is so ordered.

DATED this 22nd day of June, 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