97-0721
INCOME
Signed 7/21/97
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, )
:
Petitioner, ) DECISION
:
v. )
:
AUDITING DIVISION
OF THE ) Appeal No. 97-0721
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
proceedings. A Status Conference was
held on June 30, 1997. G. Blaine Davis,
Administrative Law Judge, heard the matter for and on behalf of the
Commission. At the Status Conference,
it was determined to convert the matter to an Informal Hearing. Present and representing Petitioner was
PETITIONER. Present and representing
Respondent were Mr. Frank Hales and Mr. Dan Engh, from the Auditing Division.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
Petitioner timely
filed his 1992 income tax returns with both the State of Utah and the Internal
Revenue Service. Thereafter, the
Internal Revenue Service made an assessment for additional taxes against
Petitioner for failure to include all of the income from all of his W-2 forms,
and specifically one W-2 form had been omitted from his return.
Petitioner failed
to amend his Utah Return within 90 days of the adjustments made by the Internal
Revenue Service, as is required by law.
Respondent received notice of the Internal Revenue Service adjustment,
and made an assessment against Petitioner for the additional tax on the income
omitted from his return. Because
Petitioner had not filed the amended return within 90 days, a penalty was
imposed as required by statute, and interest was assessed on the amount due at
the statutory rate. Petitioner has paid
the additional tax, but has not paid the penalty or the interest, and has
requested a waiver of the penalty and interest.
At the hearing,
Petitioner maintained that he had been ordered to appear before the
Commission. However, Petitioner was
granted his right to appeal based upon the Petition for Redetermination which
he filed requesting that the penalty and interest be removed from the
assessment made against him.
During the hearing,
Petitioner did not address the specific issues of whether there was reasonable
cause to waive the penalty and interest.
Instead, Petitioner focused his comments on his opinions of the taxing
system, including his complaints that, in his opinion, the state had spent more
money pursuing him than the amount at issue for the penalty and interest. It was explained to him that the hearings
were held at his request, because it was the policy of the Commission, and the
requirement of the law, that all taxpayers, regardless of the amount involved,
be treated equally and uniformly and have an opportunity to be heard and to
have their issues determined on a reasonably independent basis.
At the conclusion
of the hearing, Petitioner paid the amount of penalty and interest.
Even though
Petitioner did not address the issue of reasonable cause, in reviewing the
records of the Tax Commission, it was determined that this is the first time
this taxpayer has had this type of problem to incur a penalty. Since this is a first time error for this
taxpayer, the Commission determines that there is reasonable cause to waive the
penalty, but that the interest should be paid by him on the amounts of tax that
were due to the State.
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 associated with the
income tax return for 1992, but reasonable cause does not exist to waive the
interest. It is so ordered.
DATED this 21 day
of JULY, 1997.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
G. BLAINE DAVIS
Administrative Law
Judge
The agency has
reviewed this case and the undersigned concur in this decision.
DATED this 21 day
of JULY, 1997.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^