96-2389

Income Tax

Signed 4/17/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : DECISION

:

v. :

:

AUDITING DIVISION OF THE : Appeal No. 96-2389

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Income Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal adjudicative proceeding. A hearing was held on March 27, 997. Richard B. McKeown, Commissioner, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was PETITIONER. Present and representing Respondent were Dan Engh and Frank Hales of the Auditing Division.

Based upon the evidence in the file and presented at the hearing, the Commission makes its:

FINDINGS

1. This appeal involves the 1995 income tax year. Petitioner represented that she was assisted in the preparation of her taxes by a volunteer income tax preparer. She represents that she converted IRA’s to cash and was misinformed as to the tax implications of this transfer by the volunteer income tax preparer. She first became aware of this problem in April, 1995. Apparently there were changes in procedure or policy by the IRS.

2. She represented that this was first time error and that she has had no other problems.

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

The Tax Commission finds sufficient cause does exist to waive the penalty and interest. It is so ordered.

DATED this 17 day of APRIL, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

RICHARD B. MCKEOWN

COMMISSIONER

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 17 day of APRIL, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-1 et. seq.)

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