94-1356

Income Tax
Signed 4/20/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1356

:

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.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to income tax for XXXXX. Petitioner had requested waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner now appeals the denial of waiver of the penalty. Petitioner has paid the interest and is not appealing its assessment. Petitioner's underlying tax liability for the period in question was $$$$$.

At the conference Petitioner's representative stated that he was XXXXX and he had prepared Petitioner's income tax return for XXXXX. He stated that he had prepared an extension for Petitioner but there had been a communication error through which Petitioner was not told that he needed to include payment with the extension form. Petitioner's representative stated that Petitioner was relying on him to prepare and file timely all necessary income tax documents and had Petitioner been told to include the payment Petitioner would have done so. Petitioner filed his XXXXX return and paid the taxes on XXXXX. Petitioner's representative stated that Petitioner's reliance on a qualified tax advisor should be sufficient reasonable cause for waiving the penalties.

At the conference Respondent stated that Petitioner had a history of incurring penalties and interest on his income tax filings. Respondent stated that in addition to the year in question penalties and interest had been assessed against Petitioner for the years XXXXX. Because of this account history Respondent felt there was not sufficient reasonable cause to waive the penalties.

Petitioner's representative replied that he had not prepared Petitioner's returns for the other tax years and he did not know why they had been late.

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 the penalties of $$$$$ or interest of approximately $$$$$ assessed relating to income tax for 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 20th day of April, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner