95-1589
Income Tax
Signed 2/29/96
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioner, : ORDER
:
v. : Appeal No. 95-1589
:
COLLECTION
DIVISION, : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
:
Respondent. : Tax Type: Income Tax
_____________________________________
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. Commission Chairman, W. Val Oveson, heard
the matter for and on behalf of the Commission. Present and representing Petitioner were XXXXX and XXXXX,
CPA. Present and representing
Respondent was XXXXX.
1.
Petitioner filed the XXXXX tax return in XXXXX on time, but no longer has a
copy of the return. Petitioner was
advised to keep his returns for seven years.
2.
Petitioner claims that the tax at issue is past the statute of limitations for
claiming a refund, and should be past the statute of limitations for assessing
the tax. He paid the tax because he did
not want to hassle with the issue, but does not want to pay the penalty or
interest. He would like the tax refunded as well, if it is determined that he
did not owe it.
3.
Petitioner received no communications from Respondent for 10 years.
4.
According to Respondent, Petitioner filed an extension for XXXXX. Petitioner's return was filed on XXXXX and
tax was paid. There was a late filing
penalty and late payment penalty of $$$$$ assessed at that time, and interest
of $$$$$. A bill was sent to
Petitioner, and on XXXXX, a check was received from Petitioner in the amount of
$$$$$.
5.
On XXXXX, an IRS CP-2000 audit was assessed against Petitioner. The audit posted to his account on
XXXXX. Notice was sent to Petitioner as
follows:
Additional
Tax from IRS Audit $$$$$
Less:
Original Payment $$$$$
Refund
applied from XXXXX Return $$$$$
Adjustment
on XXXXX XXXXX
Penalty
and Interest Paid $$$$$
Balance
Due per the notice >$$$$$
6.
A follow up letter was sent by Respondent on XXXXX. A hold code was placed on the account because of a letter sent by
Petitioner on XXXXX.
7.
On XXXXX, a Notice and Demand letter was sent by Respondent. Shortly thereafter another hold code was
placed on the account by XXXXX. The
hold code was based on a conversation with Petitioner's CPA, who told XXXXX
that Petitioner was appealing the IRS audit, and that Petitioner would inform
Respondent of the results of the appeal.
8.
On XXXXX, Respondent’s Notice of Assessment of Additional tax was sent.
9.
On XXXXX, the packet was returned with a wrong address.
10.
On XXXXX, another hold code was placed on the account because of the IRS
appeal. Respondent was waiting for the
IRS to respond.
11.
On XXXXX, Respondent sent a notice of lien to Petitioner.
12.
On XXXXX, the lien was withdrawn per XXXXX because the 3 year statute of
limitations had run.
13.
On XXXXX, Petitioner sent in a waiver request, and on XXXXX, the waiver request
was denied by Respondent because the tax had not been paid.
14.
On XXXXX, Petitioner called Respondent to find out what needed to be done to
reinstate the waiver request.
15.
On XXXXX, Respondent received the payment of the tax and sent in a waiver
request to the Waiver Unit.
16.
On XXXXX, Respondent sent a partial approval of the waiver request as follows:
1.
Waived the late payment penalty
2.
Did not waive the extension penalty of $$$$$
3.
Did not waive the interest of $$$$$ plus.
Respondent
stated during the hearing that the lien fee of $$$$$ should also have been
removed.
17.
On XXXXX, Petitioner filed an appeal of the waiver decision on the interest and
penalty that was not waived.
18.
Petitioner remembers paying the tax.
19.
On XXXXX, Petitioner moved to XXXXX.
20.
On XXXXX, Petitioner moved from XXXXX to XXXXX.
21.
In July of XXXXX, Petitioner moved to XXXXX.
22.
In October of XXXXX, Petitioner moved back to Utah.
23.
When Petitioner filed a return for XXXXX he was reconnected in Respondent's
computer, and Respondent started to correspond with Petitioner again.
APPLICABLE LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(10).)
DECISION AND ORDER
Based
upon the information presented at the hearing, and the records of the Tax Commission,
the Commission finds sufficient cause does not exist to waive the penalty of
$$$$$ which has already been paid.
Sufficient cause does exist to waive the interest from the time
Petitioner left the country on XXXXX to the current date because of confusion
in the notices and lack of notice.
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
^^