98-0186

Income Tax

Signed 7/13/98

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : DECISION

:

v. :

:

AUDITING DIVISION OF THE : Appeal No. 98-0186

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, : Account No. #####

:

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 June 24, 1998. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was NAME. Present and representing Respondent were Mr. Frank Hales and Mr. Dan Engh, from the Auditing Division.

Based upon the evidence in the file and presented at the hearing, the Commission makes its:

FINDINGS

This appeal involves 1994, 1995 and 1996 income tax years. Petitioner was exempting the dependency exemption for the disability of his wife.

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

Under Utah Statute, the disability of a spouse does not qualify for the additional exemption. The statute is clear the exemption is allowed for adults with disabilities who are claimed as dependents on the return. The Commission has previously ruled on this issue in appeal no. 97-1306, indicating its refusal to apply the exemption to a spouse in light of the statutory language.

The Tax Commission finds sufficient cause does not exist to provide the exemption requested. 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 13 day of July, 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 13 day of July, 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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