94-0243

Income

Signed 7/26/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, :

) INFORMAL DECISION

v. :

)

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, ) Appeal No. 94-0243

Respondent. : Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX. G. Blaine Davis, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX. Present and representing the Respondent was XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is income tax.

2. The period in question is XXXXX.

3. Petitioner timely filed his XXXXX income tax return, which showed a refund due thereon, and Petitioner ultimately received a refund.

4. On XXXXX, the Tax Commission sent a "statutory notice of audit change", which increased his income by $$$$$ because of an error in the XXXXX booklets which indicated that the standard deduction for the state return would be XXXXX. However, XXXXX from the XXXXX included both the XXXXX. Therefore, the original additional assessment was caused by the error in the state instruction booklet.

5. Upon receipt of that notice, Petitioner contacted XXXXX, and was told to file a petition for redetermination which he did file.

6. On XXXXX, XXXXX wrote the Petitioner a letter indicating that XXXXX. Petitioner thereafter took no further actions because he understood that he would still have a hearing on the initial penalty.

7. Petitioner heard nothing further from the state Tax Commission until the Tax Commission took his XXXXX in an amount of $$$$$, and applied toward the tax.

8. Thereafter, on XXXXX, Petitioner made a trip to the Utah State Tax Commission in Salt Lake City from his residence in XXXXX, and was informed that the balance due was $$$$$. Petitioner wrote a check for $$$$$ and paid that amount to the cashier before leaving the building. XXXXX also wrote him a letter which contained the following statement:

9. Thereafter, the state later took his XXXXX tax refund in an amount of $$$$$.

10. None of the balance due was penalty, but was instead all interest.

11. In order to straighten this matter out, Petitioner has made XXXXX, which were principally caused by the lack of clarity in the instruction booklet for the income tax return.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(8).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty and interest due from and XXXXX, and to the extent any of such amounts were taken from his XXXXX income tax

refund, such amounts are ordered to be refunded to him. It is so ordered.

DATED this 26th 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 R861-1-5A(P) and Utah Code Ann. ''63-46-14(3)(a) and 63-46b-15.)

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