93-0242

Corporate Franchise

Signed 5/7/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

) INFORMAL DECISION

XXXXX )

) Appeal No. 93‑0242

) 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. As provided for by Utah Code Ann. 63‑46b‑5, this decision is based upon information contained in the Tax Commission's file.

FINDINGS

Petitioner did not request a hearing in this matter.

Petitioner filed his XXXXX state personal income tax return on time and received a refund. Then, in XXXXX, the Tax Commission audited Petitioner's return and discovered a discrepancy between Petitioner's XXXXX federal return and his XXXXX state return.

The Auditing Division apparently concluded that Petitioner's state return was prepared in error due to poor instructions in the state booklet.

Based upon the audit, Petitioner was assessed an additional amount in taxes, a $$$$$ penalty, a $$$$$ legal fee and interest.

Petitioner was penalized $$$$$ for failing to remit the delinquent tax amount within thirty days as specified in the audit letter sent to Petitioner in XXXXX.

Upon receipt of the letter, Petitioner called the Tax Commission for further information whereupon Petitioner responded that he was going to contact the I.R.S. to ascertain the figures outlined in the audit letter.

In the meantime, Petitioner continued to receive notice and demand for payment letters from the state.

A state tax refund was applied to Petitioner's account in XXXXX. Petitioner then paid the difference on XXXXX.

Petitioner is requesting a waiver of the $$$$$ penalty, $$$$$ legal fee and interest.

DECISION AND ORDER

Without question, the Tax Commission has a statutory time limit of three years to audit filed income tax returns. In this case, the Auditing Division did conduct the audit within the statute of limitations.

The waiver of the penalty and legal fee is granted, however, because it appears from the record that Petitioner had contacted the Commission upon receipt of the audit letter and simply did not pay within the allotted thirty days because he himself was trying to verify the audit information from other sources.

In the interim, a state refund was applied to Petitioner's account and by then Petitioner had enough information to not dispute the tax assessment.

The $$$$$ penalty and legal fee are not appropriate in this case where Petitioner had contacted the Commission and needed the time to investigate the situation.

Therefore, the Tax Commission finds sufficient cause does exist to waive the penalty and legal fee associated with the personal income taxes due on the year XXXXX.

The interest amount is not waived. It is so ordered.

DATED this 7 day of May, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

Absent

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a Request for Reconsideration or thirty (30) days after the date of final order to file in Supreme Court a Petition for Judicial Review. Utah State Tax Commission Administrative Rule R861-5A-1(p) and Utah Code Ann. ''63-46b-14(3)(a).

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