97-1278
INCOME
Signed 11/10/97
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
PETITIONER, )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION
OF THE ) Appeal
No. 97-1278
UTAH STATE TAX
COMMISSION, :
) Account No. #####
:
Respondent. ) Tax
Type: Income
_____________________________________
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 November 4,
1997. Jane Phan, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Petitioner was present and represented
himself. Present and representing
Respondent was Vickie Christoffersen.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
Petitioner is
appealing the assessment of penalty and interest for the late filing of the
return and payment of his 1989 state income taxes. The penalty assessed was $$$$$ and the interest assessed
approximately $$$$$.
Petitioner
explained that he had moved out of the State of Utah prior to 1989 and he
assumed he was not required to file a Utah return. In January 1993 he was contacted by the State Tax Commission
concerning the 1989 tax year. He
immediately sent a response which was received by the Tax Commission on January
14, 1993. In the response he explained
that he did not live in Utah during 1988 and he provided copies of W-2's from
wages he received in STATE and STATE.
Petitioner heard no response from the Tax Commission for nearly three
years. Then in November 1995 he was
contacted by the Auditing Division who maintained that he was domiciled in Utah
in 1988 and liable for the income tax.
Petitioner asks
that the penalty and interest be waived due to the fact that he did not know he
needed to file Utah taxes for 1988 and the length of time it took for the Tax
Commission to notify him about the error.
Respondent's
representative recommended waiver of the penalty based on first time
error. She explained that interest is
waived only in the event of Tax Commission error.
APPLICABLE LAW
The Tax Commission
is granted the authority to waive, reduce, or compromise penalties and interest
upon a showing of reasonable cause.
(Utah Code Ann. '59-1-401(10).)
DECISION AND ORDER
After reviewing the
information presented by the parties the Commission finds sufficient cause for
waiver of the $$$$$ penalty. The
Commission also finds that there was Tax Commission error in waiting nearly
three years to reply to Petitioner's response. For this reason the Tax Commission waives that portion of the
interest which accrued after January 14, 1993.
Sufficient cause was not shown to waive the interest which accrued prior
to January 14, 1993. 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 10 day
of NOVEMBER, 1997.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
_____________________
Jane Phan
Administrative Law Judge
The agency has reviewed
this case and the undersigned concur in this decision.
DATED this 10 day of
NOVEMBER, 1997.
BY ORDER OF THE UTAH
STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^