97-1326
INCOME
Signed 2/17/97
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
PETITIONERS, )
:
Petitioners, ) DECISION
:
v. ) Appeal No. 97-1326
:
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
PETITIONER. Present and representing
Respondent were Mr. Frank Hales and Mr. Brent Taylor, of the Auditing Division.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
This appeal
involves the 1992 and 1993 income tax years.
Adjustments were made to the federal returns of the taxpayers and as a result,
a requirement to file an amended return within 90 days existed for the state
returns. Failure to file an amended
return within 90 days of the adjustment at the federal level resulted in a 10%
negligence penalty being imposed on the taxpayers. Also, interest was assessed on the amount of additional tax due
and owing. Petitioners have requested
waiver of the penalty and interest.
Since this constitutes the first time that Petitioner was required to
file an amended return within 90 days of an adjustment at the federal level,
the Commission finds sufficient cause to justify waiver in this instance on the
penalties. However, since the interest
simply reflects the fact that the taxpayer and not the Tax Commission had the
benefit of the funds during the interim period, no grounds exist to justify
waiver of the interest.
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 a thorough
review of the entire matter, the Commission finds sufficient cause does exist
to justify waiver of the penalties but not the interest imposed for the periods
in issue. 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, 1998.
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
^^