94-0238

Income

Signed 7/18/94

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

:

v. : Appeal No. 94-0238

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for informal hearing onXXXXX. Lisa L. Olpin, Administrative Law Judge, presiding. Petitioner represented herself. Respondent was represented by XXXXX.

FINDINGS

1. The tax in question is individual income tax. Penalty and interest assessments are at issue.

2. The year in question is XXXXX.

3. According to Tax Commission records, Petitioner filed and paid her XXXXX income taxes on time. A Tax Commission audit showed, however, that the Internal Revenue Service reported that Petitioner had a higher income for XXXXX than Petitioner had listed with the state.

4. As a result of the audit, Petitioner owed the Tax Commission an additional $$$$$. A $$$$$ penalty for late payment was assessed along with $$$$$ for negligence. Interest in the amount of $$$$$ was added.

5. Petitioner paid the tax deficiency within 30 days of the date of the audit assessment letter.

6. The Commission later abated the $$$$$ penalty because Petitioner paid timely.

7. Petitioner testified that her XXXXX income taxes were prepared by accountant XXXXX. Petitioner had deposited money into an I.R.A. account and later learned from the I.R.S. that the dollar amount was in excess of the amount allowed for tax deduction. As it turns out, the bank also made a transfer funds error in setting up Petitioner's I.R.A.

8. As a result, Petitioner owed the I.R.S. an additional $$$$$ for XXXXX.

9. Petitioner paid this amount, but was never told by her accountant to amend her state return.

10. Petitioner contends that she is not liable for the penalty and interest amounts in this case as the error was not hers. Further, as confirmed in the account history comment screen on Tax Commission records, a Commission employee admittedly told Petitioner that no penalty and interest assessments would be charged if Petitioner paid the tax deficiency in full within 30 days.


DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty and interest amounts associated with the individual income tax due on the year XXXXX. A refund is in order.

DATED this 18 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

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. 63-46-14(3)(a) and63-46b-15.)

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