93-1728

Ind. Income

Signed 5/13/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, :

:

Petitioners, : ORDER

:

v. : Appeal No. 93-1728

:

COLLECTIONS DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

: Tax Type: Ind. Income

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. Representing Petitioners was XXXXX.

According to Tax Commission records, Petitioners filed their XXXXX and XXXXX nonresident income tax returns on time. The XXXXX return was filed by a public accountant; the XXXXX return was prepared by XXXXX.

After withholding credits were applied for both years, Petitioners owed $$$$$ for XXXXX and $$$$$ for XXXXX. Mrs. XXXXX submitted a note with Petitioners' XXXXX return, requesting that payment arrangements be made to pay the balance.

Tax Commission records also show that Petitioners paid the tax balances for the two years in question on XXXXX. Penalty and interest assessments, however, remain outstanding.

Petitioners are seeking a waiver of the penalty and interest amounts.

Mr. XXXXX stated that he was unsure whether or not he owed taxes to Utah because for the years in question he was a resident of Colorado. He earned income in Utah, however, just over the Colorado border.

He was under the impression that he didn't owe any Utah taxes and apparently didn't think anymore about it until his XXXXX credit report showed a Utah tax lien for the years XXXXX and XXXXX. Petitioners contacted an accountant for help and now understand that they do owe the tax balances.

Petitioners ask for a waiver of the penalty and interest amounts.

DECISION AND ORDER

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

The returns in question show that Petitioners were aware of the obligation to pay the balances listed thereon. These returns were prepared by seemingly knowledgeable tax preparers who did not indicate any confusion about whether or not Petitioners were liable for taxes on income earned in Utah. Further, Mrs. XXXXX's note asking for a payment plan further shows an understanding of the balance due.

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 13th day of May, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

^^