97-1354

Income Tax
Signed 2/17/97

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONERS, :

:

Petitioners, : ORDER

:

v. : Appeal No. 97-1354

:

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 for a Status Conference, but pursuant to agreement of the parties, the matter was converted to an Initial Hearing to be conducted pursuant to the provisions of Utah Code Ann. §59-1-502.5, on January 8, 1998. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioners was Mr. PETITIONER. Present and representing Respondent were Mr. Frank Hales and Mr. Brent Taylor, from the Auditing Division.

Through prior discussions between Petitioners and Respondent, all issues have been resolved except for the retirement income issue. Petitioner had excluded his civil service retirement income as retirement income. However, Respondent presented a copy of Federal Publication 721, which indicates that civil service retirement income is only exempt if it is paid to a person age 55 or more who has 30 years of service, age 60 or more, with 20 years of service, or age 62 with five years or more of service. At the time at issue in this proceeding, Petitioner was only 58 years of age and had either seven or 11 years of service, neither of which is sufficient to meet the statutory requirements.

Petitioner did not substantially disagree with the position of Respondent, but instead just knew that it was civil service retirement income based on a medical disability, and believed that it would be exempt.

DECISION AND ORDER

Based upon the foregoing, it is determined that the civil service retirement income was properly included in the income of Petitioner by Respondent. The Petition for Redetermination of Petitioner is hereby denied.

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 17 day of February, 1998.

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 17 day of February, 1998.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner

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