94-0204

Income tax

Signed 3/15/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-0204

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income tax

_____________________________________

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. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.

Petitioner is appealing $$$$$ in penalties and approximately $$$$$ in interest associated with individual income taxes for the XXXXX tax year. Upon Petitioner's request for a waiver decision the Collection Division Waiver Unit did reduce the penalties from $$$$$ to the $$$$$.

At the conference Petitioner explained that she had been living XXXXX for about XXXXX and did not know that she needed to file and pay income taxes when she XXXXX, that she owned in XXXXX. Petitioner filed a letter from her accountant which asked for a waiver of penalties stating that neither Petitioner nor the accountant, until the accountant "started on her tax records," were aware that she needed to file in XXXXX.

Further, Petitioner stated that she felt the penalty was unjust because of the length of time it took the State of Utah to send notices, get the correct forms to her accountant, process her waiver request and appeal. She felt the State of Utah was too slow and terribly negligent in these matters. She also felt the penalty was too high as it was higher than the penalty assessed by the federal government and the federal government was faster and quicker in taking care of this matter.

At the conference Respondent stated that the Collection Division had already cut the penalties in half because they felt the Petitioner had shown some reasonable cause. However, the

Respondent did not think that there was sufficient cause to recommend reducing the penalty any further or waiving the interest. In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.

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 or reduce further the penalties and interest assessed for the individual income tax for the XXXXX tax year.

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 15th day of March, 1995.

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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