93-1653

Ind. Income

Signed 7/18/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, : ORDER

:

v. : Appeal No. 93-1653

:

COLLECTIONS DIVISION OF THE : Tax Type: Ind. Income

UTAH STATE TAX COMMISSION, :

Respondent. :

_____________________________________

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 herself. Present and representing Respondent was XXXXX.

According to Tax Commission records, Petitioner filed and paid her XXXXX individual income taxes on time.

Later, however, when Petitioner received a K-l form for tax year XXXXX, she then realized that she should have reported income listed on the XXXXX K-1 form with her XXXXX return.

Initially, Petitioner understood that the K-l form dealt with the subchapter S corporation and its filings and was not included on her own individual return.

On her own accord, Petitioner amended her XXXXX return on in XXXXX, changing her tax amount due to $$$$$, up from $$$$$.

On a payment schedule, Petitioner paid the tax amount due on XXXXX.

At this time, Petitioner is requesting a waiver of the penalty assessment ($$$$$) and a recomputation of interest.

Since the settlement conference in this matter Petitioner has provided documentation showing that the Internal Revenue Service waived its respective penalty for the same error.

This was the first year Petitioner was involved in a subchapter S corporation and had to handle a K-1 form.

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 all penalties in this case relevant to individual income tax due on the year XXXXX. The interest is calculated to XXXXX.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. 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

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 18th day of July, 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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