96-2174

Income

Signed 11/21/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2174

:

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 a Status Conference, but pursuant to stipulation of the parties, was therein converted to an Initial Hearing to be heard pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner was XXXXX. Present and representing Respondent were XXXXX and XXXXX of the Auditing Division.

Respondent assessed additional income taxes against Petitioner based upon information which had been received from the Internal Revenue Service (IRS) regarding its adjustments to the federal tax return of the Petitioner. In addition, Petitioner was assessed with penalties for failure to file an amended return within the statutory time, with such penalties being in an amount of $$$$$.

After discussion with Petitioner, it appears that the amount of tax was properly assessed. However, Petitioner has raised the issue of the penalty and has represented that when the notice was sent from the IRS, he was out of the country serving for his church in Russia, and he did not return within the time period for filing an amended return. In addition, his daughter was handling many of his business affairs locally, and could not take care of the matter for him, and he had difficulty in XXXXX receiving his mail on a timely basis and in communicating back and forth with his daughter as to what to do.

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 that the audit assessment against Petitioner should be affirmed, but that sufficient cause has been shown to waive the penalty assessed for the return. However, sufficient cause has not been shown to waive or reduce the interest assessed on the return.

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 21st day of November, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

^^