97-1272
INCOME
Signed 2/17/97
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
PETITIONERS, )
:
Petitioners, ) DECISION
:
v. ) Appeal No. 97-1272
:
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 pursuant to the provisions of Utah Code
Ann. '59-1-502.5 An Initial Hearing was held on October 29,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was
PETITIONERS REP., Attorney at Law.
Present and representing Respondent was Mr. Frank Hales, of the Auditing
Division.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
This appeal
involves a request for waiver of penalty and interest associated with the
additional assessment of $$$$$ of tax as a result of an adjustment made at the
federal level for the 1992 income tax return.
The penalty was imposed according to statute due to Petitioners failure
to file an amended return within 90 days of an adjustment made at the federal
level. The penalty is approximately
$$$$$. Approximately $$$$$ of interest
has accrued on the amount of additional tax due and owing since April 15,
1993. The record indicates that this
constitutes the first time that Petitioners were required to file an amended
return within 90 days of the time that an adjustment was made on the federal
return.
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
A thorough review
of the entire matter has been conducted and the issues raised by each of the
parties has been considered. Since this
constitutes the first time the Petitioner was required to file an amended return
within 90 days of an adjustment at the federal level, the Commission finds
justification to waive the penalty in this instance. However, since the interest simply reflects the fact that the
taxpayer and not the Commission had the benefit of the funds during the interim
period, no grounds exist to justify waiver of the interest. The interest and the underlying tax remain
due and owing. It is so ordered.
This Decision does
not limit a party=s right to a Formal Hearing. Any party to this case may file 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, UT 84134
Failure to request
a Formal Hearing will preclude any further appeal rights in this matter.
DATED this 17 day
of February, 1997.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
GAIL S. REICH
Administrative Law
Judge
The agency has
reviewed this case and the undersigned concur in this decision.
DATED this 17 day
of February, 1997.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^