93-1419

Income

Signed 11/1/93

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

) INFORMAL DECISION

XXXXX, )

) Appeal No. 93‑1419

) Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter is before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the Commission's rules for informal proceedings. This decision is based on information contained in the Tax Commission's file.

FINDINGS

Petitioner XXXXX asks the Commission to waive a $$$$$ late payment penalty assessed in connection with Petitioner's XXXXX income tax liability.

Petitioner filed XXXXX state and federal income tax returns on time and paid the tax due. All Petitioner's income was declared, but Petitioner relied on advice from the Internal Revenue Service and mistakenly reported some regular income as capital gains. The Internal Revenue Service discovered the error, which increased Petitioner's federal income tax liability. The IRS also notified the State Tax Commission of the change.

On XXXXX, the Tax Commission advised Petitioner of the resulting increase in Petitioner's XXXXX state income tax liability. Petitioner was instructed to pay the additional tax by XXXXX. Petitioner actually paid the tax on XXXXX.

Petitioner has filed income tax returns for all other years in a timely manner and has properly paid all tax liability.

DECISION AND ORDER

In light of the inadvertent nature of Petitioner's error, the prompt payment of the additional tax due, and Petitioner's record of compliance with income tax filing and payment requirements, the Commission finds reasonable cause exists to waive the penalty associated with Petitioner's XXXXX income tax liability. It is so ordered.

DATED this 1 day of November, 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).

^^