94-1349

Income Tax

Signed 3/23/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1349

:

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. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner on the telephone was XXXXX XXXXX. Present and representing Respondent was XXXXX from the Collection Division.

The Internal Revenue Service performed an audit of Petitioner's tax return for the years XXXXX. Based upon that audit, additional amounts of tax were imposed. The additional tax was based upon the disallowance of certain expenses and itemized deductions which had been deducted by Petitioner on his federal income tax return.

The Utah State Tax Commission received notification of those adjustments and made similar adjustments to the Utah State income tax return of Petitioner, and they imposed a XXXXX negligence penalty.

The petitioner represented that in his opinion, the items did not justify a negligence penalty, but that the changes were merely differences of opinion as to how certain expenses should be deducted and the length of time for which such expenses should be depreciated.

The Internal Revenue Service had also imposed a negligence penalty, but on appeal by Petitioner, the Internal Revenue Service waived its penalties.

Respondent did not have any evidence of specific negligence other than the fact that the changes were required in Petitioner's income tax return for the years in question.

DECISION AND ORDER

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, but sufficient cause has not been shown to waive the interest assessed for the taxable years XXXXX.

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 23rd 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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