94-1446
Income
Signed 3/3/95
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX
Petitioner, ) INFORMAL DECISION
:
v. )
:
COLLECTION DIVISION OF THE ) Appeal
No. 94-1446
UTAH STATE TAX COMMISSION, :
) Account
No. XXXXX
:
Respondent. ) Tax Type: Income Tax
_____________________________________
This matter came before the Utah State Tax
Commission pursuant to the Administrative Procedures Act and the rules of the
Utah State Tax Commission for informal proceedings. An informal hearing was held on XXXXX. Alice Shearer, Commissioner, heard the matter for and on behalf
of the Commission. Present by telephone
and representing Petitioner was XXXXX, wife of Petitioner. Present and representing Respondent was
XXXXX of the Collections Division.
STATEMENT
OF CASE
XXXXX said that the events surrounding the
underpayment of taxes for the XXXXX year were caused by a poorly worded
instruction in the Utah tax booklet.
Since the Tax Commission letter of XXXXX said, "The directions given
in the instruction booklet for determining the standard deduction amount from
the federal 1040EZ are not correct," her husband thought no penalty should
be imposed.
XXXXX said the penalty was imposed because
the payment of the $$$$$ in tax was received eight days late. The penalty must have been billed
immediately as XXXXX records show that XXXXX requested a waiver of the penalty
in a letter dated XXXXX. The Tax Commission
has no record of the XXXXX letter. In
XXXXX, XXXXX went to the Provo office of the Tax Commission and was told they'd
"take care of it--not to worry."
When no correspondence came for 3 years, no
bills, and no response to the waiver request, the XXXXX assumed it was
"fixed." The
"Notification of Waiver Decision," dated XXXXX was a complete
surprise. It is that notice of a denial
of the waiver request (from XXXXX?) that prompted this appeal.
APPLICABLE LAW
The Tax Commission is granted the authority
to waive, reduce, or compromise penalties and interest upon a showing of
reasonable cause. (Utah Code Ann. '59-1-401(10).)
DECISION
AND ORDER
The Tax Commission has the power to waive
penalties, tax or interest for reasonable cause.
The fact that the XXXXX relied upon
representation of a Tax Commission employee and that they had received no
response to the first appeal in almost 4 years is reason to waive the penalty
of $$$$$ and interest accrued.
It is so ordered.
DATED this 3 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
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.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for
Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46b-14(3)(a).)
^^