Income Tax

Signed 3/28/95





Petitioner, : ORDER


v. : Appeal No. 94-1415





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. Despite notice having been given allowing the Petitioner to appear at the Settlement Conference by telephone conference call Petitioner chose not to appear. Petitioner instead requested by letter that the decision be based on information provided in her petition for redetermination. Present and representing Respondent was XXXXX XXXXX.

Penalties in the amount of $$$$$ and interest in the amount of approximately $$$$$ were assessed against Petitioner relating to Petitioner's income tax for the XXXXX tax year. The underlying amount of the income tax owed for XXXXX was $$$$$, of which only $$$$$ was the additional amount at issue. Petitioner had requested a waiver from the Collection Division Waiver Unit which was denied. Petitioner now appeals that denial.

In her correspondence Petitioner stated that she moved from the State of Utah in XXXXX and left "the customary forwarding address." Petitioner did not receive notice of an error in her XXXXX return. She found out about the tax delinquency in XXXXX XXXXX from her XXXXX. Petitioner contacted the Tax Commission and after receiving no response to several letters she called and spoke with a Tax Commission employee. When she understood that she had made an error on her XXXXX tax return she paid the additional amount owed in XXXXX. Petitioner felt the penalties and interest should be waived because of the Tax Commission's failure to contact her timely, failure to answer her correspondence timely, the fact that she contacted the Tax Commission about the delinquency and that she was a XXXXX.

Respondent's records indicate the deficiency in the amount of income tax Petitioner had originally paid for XXXXX was the result of an audit performed by the Internal Revenue Service (IRS). Respondent stated that when an IRS audit results in an adjustment to a taxpayer's federal return the taxpayer is required by law to file an amended Utah return. Petitioner did not comply, nor did Petitioner give the Tax Commission notice of her address change. A taxpayer is required by law to notify the Tax Commission directly of an address change. Notice to the post office is not sufficient. Respondent's position was that Petitioner had not shown sufficient reasonable cause to waive or reduce the penalty or interest.

In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.


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 assessed relating to the Petitioner's XXXXX income tax.

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