93-1417

Income

Signed 12/7/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, : ORDER

:

v. : Appeal No. 93-1417

:

COLLECTIONS DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. 59-1-502.5, on XXXXX. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Petitioner was present and represented himself. Present and representing Respondent was XXXXX.

According to Tax Commission records, Petitioner timely filed and paid his XXXXX individual income taxes. Then, in XXXXX, the Commission audited Petitioner and learned from the Internal Revenue Service that Petitioner had an increased amount of income for XXXXX.

As a result, the Commission assessed Petitioner the additional tax plus a ten percent penalty and interest. Petitioner paid the tax and a partial amount of the interest within 30 days of the audit assessment letter.

A second penalty has now attached for failure to pay the full amount within 30 days.

Petitioner is requesting that the Commission waive the penalties and remaining interest amounts.

Petitioner explained that he settled an audit for the year XXXXX with the Internal Revenue Service in XXXXX. As documented in a letter from Petitioner's accountant, the accountant told Petitioner that he could wait until the I.R.S. contacted the state before "settling the matter" with Utah. For this reason, Petitioner did not file an amended return within 90 days of his settlement with the I.R.S.

At this time, XXXXX has agreed to waive the penalties assessed on this account in light of the misinformation provided by Petitioner's accountant.

The interest amount is still in dispute.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties assessed for the year XXXXX on individual income tax. The interest, however, is not waived.

This Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files 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 7th day of December, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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