93-1421
Income
Signed 2/28/94
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
: ORDER
XXXXX, )
: Appeal No. 93-1421
)
: Account No. XXXXX
_____________________________________
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, Presiding Officer, heard the matter for and on behalf of the
Commission. Representing Petitioner was
XXXXX, Petitioner's wife.
According to Tax Commission files,
Petitioner earned income in XXXXX in tax year XXXXX. There was confusion on the part of Petitioner as to how to file
and report this out of state earned income.
The Commission audited Petitioner's
XXXXX return twice. The first audit
dated XXXXX showed that Petitioner owed $$$$$ in Utah state income tax. Penalties and interest were assessed also.
On XXXXX Petitioner paid $$$$$ on his
XXXXX account. According to
Petitioner's wife, this amount was paid with the understanding that it would
zero out this account. Mrs. XXXXX
testified that Commission employee, XXXXX, told her that if Petitioner
submitted this amount, it would cover the liability in full.
According to Tax Commission records,
Petitioner's $$$$$ payment, coupled with other credits and refunds from
intervening years, totalled the exact amount of tax owed pursuant to this first
audit, exclusive of penalty ($$$$$)[1]
and interest ($$$$$).
Then, on XXXXX, an amended audit was
completed which gave a tax amount owing for XXXXX at $$$$$.[2] The Commission recomputed Petitioner's
penalty and interest amounts. A single
ten percent negligence penalty in the amount of $$$$$ was waived; a remaining
penalty for late payment in the amount of $$$$$ was not.
Petitioner understood that his payment
of $$$$$ was sufficient to resolve his balance with the Commission, however, in
early XXXXX he received a notice stating that there was still a balance
due. According to Commission records,
the Commission billed Petitioner on XXXXX demanding payment by XXXXX. Petitioner, however, had submitted a request
for waiver of penalties and interest on XXXXX.
The waiver request was denied XXXXX.
Petitioner paid the balance of $$$$$ on XXXXX.
Commission employee Mr. XXXXX sent
Petitioner two letters in XXXXX describing the waiver process on the penalty
and interest amounts, informing him that the Commission would consider the
request in due time now that Petitioner had paid the full tax amount due.
Petitioner maintains that he paid his
obligation to the state in its entirety back in XXXXX with his $$$$$
check. He is requesting a waiver of the
$$$$$ amount he paid above this amount.
DECISION AND
ORDER
Based upon the information presented
at the conference, and the records of the Tax Commission, the Commission finds
sufficient cause has been shown to waive the remaining penalty amount of
$$$$$. The $$$$$ legal fee is not
waived. the Collection Division is
ordered to recompute the interest to XXXXX.
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 28th day of February, 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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