95-1413
Income
Signed 2/29/96
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioners, : ORDER
:
v. : Appeal No. 95-1413
:
AUDITING
DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
:
Respondent. : Tax Type: Income
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an Initial Hearing
pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail Reich, Administrative Law Judge, heard
the matter for and on behalf of the Commission. Present and representing Petitioners by telephone was XXXXX. Present and representing Respondent were
XXXXX and XXXXX.
This
appeal involves the XXXXX income tax year.
The Internal Revenue Service made an adjustment to Petitioners’ XXXXX
federal tax return. Petitioners failed
to file an amended return with the state within 90 days of the adjustment by
the I.R.S. to the federal return. Upon
notification from the I.R.S., the State made the appropriate adjustment to the
state tax return and issued an assessment of additional tax with a negligence
penalty for failing to file an amended return within the requisite 90
days. An additional XXXXX late payment
penalty was imposed in error and Respondent has removed that from the
assessment. All of the tax, penalty,
and interest has been paid. The
Petitioners are requesting a refund of the penalty based on lack of knowledge
regarding the requirement of filing an amended return within the 90 day period.
Respondent
asserted the penalty is imposed when the taxpayer fails to comply with the
statutory requirement, and lack of knowledge constitues insufficient grounds
for refunding the penalty.
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
Based
upon the information presented at the hearing, and the records of the Tax
Commission, the Commission finds insufficient cause has been shown to refund
the penalty assessed for the XXXXX income tax year.
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 29 day of February, 1996.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^