95-1116

Income

Signed 12/22/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioners, : ORDER

:

v. : Appeal No. 95-1116

:

AUDITING DIVISION OF THE : Serial No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah Tax Commission for a Status Conference on XXXXX. Present and representing Petitioner were XXXXX and XXXXX. Present and representing Respondent was XXXXX. The parties, after discussion of the issues, agreed to convert the Status Conference into an Initial Hearing.

This case involves the XXXXX income tax year.

Penalties were imposed based on Petitioners’ failure to contact the Tax Commission within 90 days of an adjustment by the IRS to the XXXXX tax return. Respondent explained to Petitioners that upon official notice from the IRS of an adjustment, the State Tax Commission will make the respective adjustments to the tax due and owing to the State. If Petitioners are successful in the future in any attempt to have the IRS modify its adjustment, Petitioners have the ability to come forward and notify the State of the adjustment and the State will make any appropriate reduction to the State taxes and issue any refund that may be necessary.

Having recognized that the Auditing Division acted within its statutory rights by imposing the penalty and interest for Petitioners failure to file an amended return within 90 days of the adjustment by the IRS, and having apprised Petitioners of the right to inform the State of any reduction in taxes which may subsequently occur from a re-adjustment by the Federal government, the Tax Commission hereby dismisses the appeal, subject to the rights in the following paragraph:

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 22nd day of December, 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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