96-2221

Income Tax

Signed 3/11/97

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, :

:

Petitioners, : ORDER

:

v. : Appeal No. 96-2221

:

AUDITING DIVISION OF THE : Account No. #####

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, :

:

Respondent. : Tax Type: Income Tax

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Telephone Status Conference on February 20, 1997. During the hearing, the parties stipulated that the Status Conference could be converted to an Initial Hearing to be held pursuant to the provisions of Utah Code Annotated §59-1-502.5. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner was PETITIONERS REP.. Present and representing Respondent was RESPONDENT REP. from the Auditing Division.

Petitioner resided in Utah for several years, but then moved from Utah to New Jersey in the summer of 1988.

Petitioner did not file a Utah Individual Income Tax Return for 1988. However, Petitioner did state that he asked someone in New Jersey about it, but they told him that it was so small that it wasn’t worth worrying about, so he did not file an income tax return.

Respondent performed an audit on the income tax return of Petitioner, and assessed income tax, penalty and interest. Petitioner originally received the notice of assessment, but said that there was no way he could owe $$$$$ so he became frustrated and outraged and did not pursue the matter. He said that he frankly said “to hell with it.” Following pursuit by the Auditing Division, Petitioner has now acknowledged a smaller liability, and has paid the amount of the obligation in full. Petitioner now requests that the penalty and interest be waived. However, the Commission finds that Petitioner did not present any reasonable cause as to why the penalty or interest should be waived.

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 has not been shown to waive either the penalties or interest assessed for the 1988 period.

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 11 day of March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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