95-1850

Income

Signed 4/11/96

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioners, : ORDER

:

v. :

:

AUDITING DIVISION OF THE : Appeal No. 95-1850

UTAH STATE TAX COMMISSION :

: Account No. XXXXX

Respondent. : Tax Type: Income

_____________________________________

A Status Conference was held in the above-entitled matter on XXXXX, G. Blaine Davis, Administrative Law Judge, presiding. Present and representing Petitioner was XXXXX. Present and representing Respondent were XXXXX and XXXXX from the Auditing Division.

Based upon discussion among the parties, it was agreed to convert the hearing to an Initial Hearing and to thereafter issue an order based upon the representations made at the hearing.

Petitioner filed an amended XXXXX income tax return with the Internal Revenue Service to include a W-2 form that had not previously been sent to him, which resulted in additional federal and state income taxes. When he filed the amended federal return, the agent for the Internal Revenue Service told him that he did not need to file an amended return with the state of Utah, but that it would instead send him a notice of the amount due. Petitioner relied upon the statement from the Internal Revenue Service agent and did not file an amended state return.

Approximately a year later, the Utah State Tax Commission sent him a notice of additional amounts due based upon his amended federal return, and imposed a penalty of $$$$$ and interest at the statutory rate. Petitioner herein is requesting that the penalty and interest be waived.

DECISION AND ORDER

Based upon the information presented at the Initial Hearing and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty, but that sufficient cause has not been shown to waive the interest assessed on the amended return. Accordingly, the penalty is hereby waived, but the interest is not waived.

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

Attention: 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 11 day of April, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson, Chairman Roger O. Tew

Commissioner Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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