93-0940

Income

Signed 8/4/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

) INFORMAL DECISION

XXXXX, )

) Appeal No. 93‑0940

) 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 asks the Commission to waive penalty and interest with respect to his XXXXX individual income tax.

A tax preparer completed Petitioner's XXXXX tax return, thereby establishing tax liability of $$$$$. Tax Commission staff later discovered an error in the preparer's computations which increased Petitioner's liability by $$$$$. Interest was added at the statutory rate. Also, a penalty of $$$$$ was assessed.

In other years, Petitioner has properly filed his income tax returns and paid his tax liability.

DECISION AND ORDER

The error leading to Petitioner's additional tax liability was inadvertent and was not committed by Petitioner himself. Furthermore, Petitioner has a good history of compliance with income tax requirements. The Commission therefore finds reasonable cause to waive the $$$$$ penalty in this matter.

Petitioner also asks that interest be waived. However, under these circumstances, interest is a reasonable charge for the Petitioner's use of the tax funds in question until they were paid to the Commission. The Commission declines to waive interest.

The Collections Division is instructed to determine Petitioner's current liability in accordance with this decision and advise Petitioner of the amount of such liability. It is so ordered.

DATED this 4 day of August, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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 the final order to file in District 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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