BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 93-1451
: 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.
Petitioner timely filed and paid his individual income tax for the year XXXXX, receiving a refund of $$$$$. In XXXXX, however, the Tax Commission audited Petitioner's return based on information provided by the Internal Revenue Service.
As a result of the audit, the Commission amended Petitioner's XXXXX return, increasing Petitioner's tax liability. Petitioner's corrected refund amount is $$$$$. In XXXXX, the Commission billed Petitioner for the outstanding $$$$$ plus XXXXX in interest.
Petitioner paid the entire amount in XXXXX and is requesting a waiver of the interest assessment.
Petitioner admits he made a mistake on his XXXXX return, possibly due to his dyslexia, but contends that the Commission should have discovered the mistake earlier. The time lapse has now caused him excessive interest charges.
In support of his argument, Petitioner provided a copy of an audit change on his XXXXX state taxes which shows that the Commission discovered Petitioner's error in XXXXX and speedily refunded him.
Petitioner feels that the Commission refunds taxpayers when it is cost effective for it to do so, but is slow to act when taxpayers owe because the interest accrues in its favor.
DECISION AND ORDER
The Tax Commission finds sufficient cause does not exist to waive the interest associated with the individual income tax due on the year XXXXX in that Petitioner had the use of the overpayment funds.
By way of explanation, the Commission does not audit all individual income tax returns. When the Commission received information from the I.R.S. on Petitioner's XXXXX federal return showing a discrepancy, it notified Petitioner soon thereafter.
It is also noted that the state has three years to audit a filed return per Utah statute. (Utah Code Ann. '59-10-536(1).)
Addressing Petitioner's other contention, the circumstances of how it was that Petitioner's XXXXX individual income tax return was audited is not known, neither is it relevant to this case.
It is so ordered.
DATED this 2nd day of December, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
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).