Signed 4/29/94





XXXXX,                           )


Petitioner,            )  FINDINGS OF FACT,


v.                               )  AND FINAL DECISION


OPERATIONS DIVISION OF THE       )  Appeal No. 93-0660


)  Account No. XXXXX

Respondent.            :



                             STATEMENT OF CASE

This matter came before the Utah State Tax Commission on Petitioner's appeal dated XXXXX.  The parties have provided the Commission with written submissions and have requested that the decision be made on the record without a hearing.

                             FINDINGS OF FACT

1.  The tax period in question is the tax year beginning XXXXX and ending XXXXX.

2.  The Petitioner was a resident of Utah during the period from XXXXX through XXXXX.  On XXXXX the Petitioner and his family left Utah and established residence in Pennsylvania.

3.  For the tax year XXXXX, the Petitioner and his wife filed a joint non-resident/part-year resident income tax return with the state of Utah.  The XXXXX Utah tax return, Form TC-40 showed a Utah tax liability of $$$$$, a withholding of income for the Petitioner of $$$$$, leaving a tax due balance of $$$$$.  While a resident of Utah, the Petitioner was an employee of XXXXX.  In the XXXXX tax year, the Petitioner received $$$$$ in income from that source.  The Petitioner also received $$$$$ in retirement income during the XXXXX tax year.  Utah income was reported as four twelfths of the total amount, or $$$$$.  A total amount of Utah income shown on Petitioner's XXXXX Utah tax return line 19a. was $$$$$.

4.  For purposes of evaluating the tax liability of the Petitioner, the Operations Division accepted the figures on Form TC-40 for the XXXXX tax year as filed by the Petitioner.  As required for part-year residents, the Petitioner included a copy of the federal tax return Form 1040.

5.  Pursuant to Utah Code Ann. '59-1-401(2)(a), a penalty of $$$$$ was assessed by the Operations Division since an amount of tax due was reflected on the Petitioner's XXXXX tax return, and yet no payment was received for that tax due by the deadline for payment of XXXXX taxes.

6.  Pursuant to Utah Code Ann. '59-1-402, interest has been applied to the tax due at the statutory rate of 12% annually.  Interest has been computed from the date due in XXXXX forward.

                              APPLICABLE LAW

The state taxable income of a part-year resident shall be a percentage of the amount that would have been state taxable income if the taxpayer had been a full-year resident.  This percentage is the Utah portion of FAGI divided by the total FAGI, not to exceed 100%.  The Utah portion of a part-year resident's FAGI shall include income from wages, salaries, tips, and other compensation earned while in a resident status.  (Utah Admin. Rule R865-9-7I.)


The Petitioner is challenging the inclusion of relocation allowance received from the federal government for a transfer from XXXXXto XXXXX.  A review of the record reveals that the relocation reimbursement and the related actual moving expenses were accounted for in the appropriate part of the computations as required by the allocation formula described above.  The tax assessment was the result of a proper application of the applicable statute.  Had the Petitioner not received the relocation reimbursement and incurred the accompanying moving expenses in the year in question, application of the appropriate allocation formula, as required by Utah law, would have resulted in higher taxes being due in the state of Utah.  The Commission finds that the arguments raised by the Petitioner in regard to the relocation reimbursement insufficient to warrant any adjustment in the assessed tax.


The Commission affirms the assessment arrived at by the Operations Division and finds no reasonable cause to waive, reduce or compromise any assessment of penalty or interest.

DATED this 29th day of April, 1994.


W. Val Oveson                       Roger O. Tew

Chairman                         Commissioner


Joe B. Pacheco                   Alice Shearer

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 Code Ann. ''63-46b-13(1), 63-46b-14(3)(a).