97-1306
INCOME
Signed 11/10/97
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
PETITIONER, )
:
Petitioners, ) ORDER
:
v. ) Appeal No. 97-1306
:
AUDITING DIVISION OF THE ) Account
No. #####
UTAH STATE TAX COMMISSION, :
)
Respondent. : Tax Type: Income
_____________________________________
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on October 7, 1997. Jane Phan, Administrative Law Judge, heard
the matter for and on behalf of the Commission. Present and representing Petitioners was PETITIONERS REP.. Present and representing Respondent were
Frank Hales and Brent Taylor. The
matter had originally been scheduled for a Status Conference on October 7,
1997. However, upon the approval of the
parties the Status Conference was converted to the Initial Hearing in this
matter.
This appeal concerns Respondent's denial of
Petitioners claim for the disabled exemption for the years 1994 and 1995. Respondent denied the exemption on the
grounds that the person for whom it was claimed, PETITIONER, was the secondary
taxpayer and not a dependent on the return.
The representative for Petitioner argued that the forms TC-40 and TC-40D
were inconsistent with the statute and appeared to allow the exemption for any
adult with a qualifying disability.
APPLICABLE
LAW
The Utah Legislature has provided for an
additional exemption for dependents
with disabilities. Utah Code Ann. '59-10-114
(2)(f) provides as follows:
75% of the amount of the personal exemption, as defined and calculated
in the Internal Revenue Code, for each dependent child with a disability and
adult with a disability who is claimed as a dependent on a taxpayer's return.
DECISION
AND ORDER
The statute is clear that the exemption is
allowed for adults with disabilities who are claimed as dependents on the
return. The statutes have legal
precedence over the forms. However, in
this case the forms TC-40 and TC-40D are not inconsistent with the statute, the
forms are merely silent on the issue of whether the disabled adult need be
claimed as a dependent, which is clearly required when read in conjunction with
the statute.
Based on the foregoing the audit assessment
against Petitioners is sustained.
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 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
^^