96-2282

Income Tax

Signed 5/11/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2282

:

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 PETITIONER. Present and representing Respondent were XXXXX and XXXXX from the Auditing Division.

Petitioner’s 1991 income tax return was audited by the Internal Revenue Service and an adjustment was made. Petitioner failed to file an amended tax return with the State of Utah within 90 days as required by statute. The Internal Revenue Service audit was reported to the Utah State Tax Commission, and an assessment was made which included a 10% negligence penalty for failure to timely file an amended return.

Petitioner represented that she did not understand that an amended state return was required, but that she felt there were deductions to which she was entitled which had not been included on her federal or state return, which she felt gave her a “fudge factor.”

This is the first time Petitioner has had the problem of failing to file an amended return. The Commission therefore finds that it is a first time error, and that the penalty 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 Initial Hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty, but no cause has been shown to waive the interest assessed for the 1991 income tax return of Petitioner.

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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