Signed 7/26/94





In Re: )



) Appeal No. 93‑2255

) Account No. XXXXX






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.


1. The tax in question is income tax.

2. The period in question is XXXXX.

3. The Petitioners timely filed their XXXXX income tax return on XXXXX, and they paid the full amount of tax shown to be due on the return.

4. The return was filed as married filing jointly, but showing only one exemption, because the Petitioners had been married during the year and XXXXX father claimed her on his tax return, so they only claimed the one exemption.

5. The parties did not qualify to file a joint return, and on XXXXX, the Tax Commission sent a notice of correction to the return.

6. The Petitioners claimed that they did not receive any notice until XXXXX, when they received a letter requesting information regarding the reason only one exemption was claimed on the joint return. Petitioners claim to have responded to explain that the wife had been claimed on her father's return, so that only one exemption was available to be claimed.

7. The Tax Commission records indicate that on XXXXX, a letter was sent to the taxpayers informing them that they needed to amend their return if two exemptions and the standard deductions are not correct.

8. On XXXXX, a letter was sent to the taxpayers with instructions for claiming a married exemption, but two days later, on XXXXX, a notice and demand for payment of taxes was mailed from the Tax Commission.

9. The penalty in question was a failure to pay penalty based upon the failure to make payment by the due date of XXXXX, which was demanded in the letter sent XXXXX.

10. Taxpayers claim that they received information in XXXXX, indicating that they owed an additional $$$$$ plus penalties and interest.

11. Petitioners paid the amount of the tax in XXXXX, which was received by the Tax Commission on XXXXX, and they also requested a waiver of the penalty and interest.

12. It appears that the penalty was imposed during a period when there was continuing communication between the Tax Commission and the Petitioner and it appears the Petitioner was attempting to respond to the inquiries to the Tax Commission.


The Tax Commission finds sufficient cause does exist to waive the penalty and interest associated with the income tax for XXXXX. It is so ordered.

DATED this 26 day of July, 1994.


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‑l(p) and Utah Code Ann. '63‑46b-14(3)(a).