96-2225
Income Tax
Signed 2/11/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, :
:
Petitioner, : ORDER
:
v. : Appeal No. 96-2225
:
AUDITING
DIVISION OF THE : Account No. #####
UTAH STATE TAX COMMISSION, :
STATE OF UTAH, :
:
Respondent. : Tax Type: Income Tax
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a Telephone Status
Conference on February 20, 1997, but was therein converted to an Initial Hearing
to be conducted 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 were
RESPONDENT REP. from the Auditing Division.
Petitioner
timely filed a 1992 federal and state income tax return, and thereafter timely
filed an amended federal and state income tax return to take into account a
loss incurred from an airplane accident that happened during 1992.
Petitioner
received the refund from the Utah State Tax Commission which resulted from the
amended return. The Internal Revenue
Service reviewed the claim for the 1992 loss, and reduced the allowable amount
of the loss by approximately #####.
Following
the adjustment to the amended return by the Internal Revenue Service,
Petitioner did not file a second amended income tax return with the Utah State
Tax Commission. Accordingly, when the notice
of the adjustment was received by the State Tax Commission, it imposed
additional tax and imposed a ##### negligence penalty for failure to timely
file the amended state tax return.
This
is the first time Petitioner has failed to file an amended state tax return as
required by law.
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 Initial Hearing, and the records of the
Tax Commission, the Commission finds sufficient cause has been shown to waive
the penalty imposed, but sufficient cause has not been shown to waive any
portion of the interest assessed for the 1992 income tax 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 11 day of February, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^