Income Tax
Signed 3/28/95







Petitioner, : ORDER


v. : Appeal No. 94-1336





Respondent. : Tax Type: Income Tax



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 by telephone conference call wasXXXXX XXXXX. Present and representing Respondent was XXXXX.

Penalties for late payment and late filing of $$$$$, a lien filing fee of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to his income tax filing for the tax year XXXXX. Petitioner had requested a waiver of the penalty and interest from the Collection Division Waiver Unit who denied the request. The underlying amount of the tax owed by Petitioner for the XXXXX tax year was $$$$$, all but $$$$$ of which had been withheld and paid to the Commission by the Petitioner's employers.

At the conference Petitioner stated that he had timely filed and paid his income tax for the year in question. Petitioner had moved from Utah in XXXXX thinking that all Utah tax liability had been paid. In XXXXX, while in the process of refinancing his home in XXXXX, Petitioner discovered a Utah tax lien filed against XXXXX. Upon contacting the Tax Commission about the lien he was told that his XXXXX tax return had not been filed and was sent a Statement of Delinquent Taxes. Petitioner stated that the Commission made a series of errors and corrections until they determined the actual amount due. However, the first Statement of Delinquent Taxes was based on an estimated amount of liability, as is the procedure, since the Commission did not have Petitioner's actual return on file.

Petitioner stated that the Commission had not given him any notice of any tax liability prior to putting the lien on his residence in XXXXX. Petitioner was upset that the Tax Commission knew where he was living to file a lien on his home but did not give him notice of the tax delinquency prior to filing the lien. If Petitioner had been given notice earlier, he may have been able to prove that he had filed and paid the XXXXX tax return.

Petitioner stated that because of the number of years that had passed he did not have the documentation to prove that he had filed the XXXXX return so he had agreed to pay what he considered to be the full unpaid liability, $$$$$, in a letter which specifically stated, "XXXXX $$$$$XXXXX $$$$$ XXXXX." No endorsement to this effect was placed on the check. Although it made no written acceptance of the terms of the letter, the Tax Commission deposited the check and Petitioner stated that they were bound by his letter to waive all penalties and interest.

Further, Petitioner felt that the interest amount had been calculated from the total amount of the tax liability due, most of which had been paid in XXXXX by the withholding from Petitioner's employers. Upon recalculation, Petitioner is incorrect. The interest is based on the unpaid balance of $$$$$.

Respondent stated that the penalty and interest were validly and properly assessed because of the late filing of the XXXXX tax return and would not recommend a waiver or reduction.


Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties of $$$$$ and interest of $$$$$ associated with the Petitioner's 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 28th day of March, 1995.


W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner