93-0970

Income

Signed 12/17/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

: ORDER

XXXXX, )

: Appeal No. 93-0970

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference on XXXXX, pursuant to the provisions of Utah Code Ann. §59-1-502.5. Paul F. Iwasaki, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX.

For the tax year XXXXX the Petitioner timely filed an extension and remitted $$$$$ with that extension.

The extension was necessary because the Petitioner is a member of limited partnership which runs a shopping center in XXXXX, Arizona and derives a significant amount of income from that source. The necessary information from that limited partnership was not available in time for the XXXXX deadline.

For the prior tax year, the Petitioner had a tax liability of $$$$$. He also had a credit for taxes paid to Arizona for that period in the amount of $$$$$. It was reasonably assumed by the Petitioner that the credit for taxes paid to Arizona would be the same for the XXXXX tax year. The actual amount of credit for taxes paid to Arizona for XXXXX, was $$$$$. Thus, the Petitioner underestimated the amount of tax which was actually due.

As a result of the erroneous estimate, the Petitioner was assessed a penalty in the amount of $$$$$ plus interest applied at the statutorily prescribed rate.

DECISION AND ORDER

In the present case, the Commission finds sufficient cause has been shown which would justify a waiver of the penalties associated with XXXXX income tax year. No reduction nor waiver in the amount of interest assessed, however, is granted.

This Decision and Order will become the Final Decision and Order of the Commission unless the parties to this case file a written request for a Formal Hearing within ten (10) days of the date of this decision. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

160 East 300 South

Salt Lake City, Utah 84134

It is so ordered.

DATED this 17 day of December, 1993. BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

ABSENT

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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