92-2139 - Income

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

XXXXX, )

:

Petitioner, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW AND

v. ) FINAL DECISION

:

AUDITING DIVISION OF THE ) Appeal No. 92-2139

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

Respondent. :

___________________________________

STATEMENT OF CASE

This matter was heard before the Utah State Tax Commission in a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter on behalf of the Commission. Petitioner was present and represented herself. XXXXX, Assistant Utah Attorney General, was present and represented Respondent.

Based upon the testimony and evidence presented at the hearing, the Tax Commission makes its findings of fact:

FINDINGS OF FACT

1. The tax in question is individual income tax.

2. The year in question is XXXXX.

3. Petitioner filed her XXXXX state personal income tax long form on time. Petitioner relied upon the state instruction booklet in preparing her return which indicated she was entitled to a $$$$$ standard deduction as a single taxpayer.

4. Petitioner received the refund she requested on her XXXXX return.

5. In XXXXX, Petitioner received a letter from the Tax Commission informing her that the XXXXX instruction booklet had been printed in error and that the standard deduction for a single taxpayer was $$$$$ and not $$$$$.

6. Petitioner was assessed the additional tax amount plus interest.

7. Petitioner claims that she cannot be held accountable for the additional assessments in that she relied upon the state's booklet and should not be held to pay for a state error. Further, Petitioner feels that the state has taken too long to contact her regarding the problem.

8. Petitioner also learned from friends that the state had sent out a correction notice to the booklet soon after the filing deadline. Petitioner did not receive a correction notice and now interest has accrued for two years running.

9. The Auditing Division concurred that the XXXXX instruction booklet was in error just as Petitioner described, but argues that the misprint is not grounds to excuse Petitioner from paying her true amount of taxes for XXXXX.

CONCLUSIONS OF LAW

Relevant to this case is the following code section found at Utah Code Ann. §59-10-536(1):

Except as otherwise provided in this section, the amount of any tax imposed by this chapter shall be assessed within three years after the return was filed...

In addition, upon reasonable cause, the Commission may waive, reduce, or compromise any of the penalties or interest imposed. (Utah Code Ann. §59-1-403(8)).

DECISION

Based upon the evidence presented, the Tax Commission finds that Petitioner is liable for the additional taxes assessed after Petitioner's standard deduction amount was corrected. The interest is not waived as Petitioner had the use of this money. It is so ordered.

DATED this 10th day of June, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner