95-0675

Income

Signed 4/11/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 95-0675

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission upon a petition which was entitled Petition for Rehearing by Petitioner, but which the Commission deems to be a Petition for Reconsideration under its rules. Said petition from PETITIONER was dated May 8, 1996, and received at the Commission on May 10, 1996. The matter also came before the Commission on a Petition for Reconsideration filed by Respondent on April 22, 1996. Both petitions were filed as a result of the Commission’s final decision dated April 11, 1996.

The petition of Petitioner alleges that the final decision on the Commission is not consistent with the law. The Commission disagrees with Petitioner’s interpretation of the law, and finds his Petition for Rehearing, i.e., Petition for Reconsideration to be without merit.

Respondent has requested that the Commission modify its final decision to show that the tax type is income tax, rather than penalty and interest and to also clarify paragraph 16 of the findings of fact and conclusions of law to more completely and accurately set forth the burden of proof issue relating to the 50% Intent to Evade penalty.

APPLICABLE LAW

Utah Administrative Rule R861-1-5A(P) provides that a Petition for Reconsideration “will allege as grounds for reconsideration either a mistake in law or fact, or the discovery of new evidence.” Under this rule, the Tax Commission may exercise its discretion in granting or denying a Petition for Reconsideration.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petition for Reconsideration filed by Petitioner is hereby denied. It is further the decision and order of the Utah State Tax Commission that the Petition for Reconsideration filed by Respondent is hereby granted, and the Findings of Fact, Conclusions of Law, and Final Decision entered by the Commission on April 11, 1996, are hereby modified to the following extent:

1. The Order should have reflected that the tax type was income tax rather than penalty and interest.

2. Paragraph 16 of the Findings of Fact are hereby amended to read as follows:

The Commission finds that the Petitioner has failed to sustain his burden of proof to establish that the penalties were not duly and properly imposed. The Commission therefore finds that both the late filing penalty and the 50% penalty for intent to evade the tax are appropriate and were properly imposed by Respondent.

It is so ordered.

DATED this 11 day of APRIL, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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