98-0189
Income Tax
Signed 7/20/98
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, :
:
Petitioners, : DECISION
:
v. :
:
AUDITING
DIVISION OF THE : Appeal No. 98-0189
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. The matter
was scheduled for a Status Conference, but it was therein stipulated that it
could be converted to an Initial Hearing.
An Initial Hearing was held on June 4, 1998. G. Blaine Davis, Administrative Law Judge, heard the matter for
and on behalf of the Commission.
Present and representing Petitioners were 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 and enters its:
FINDINGS
Petitioners
timely filed their income tax return for the calendar year 1993. In the preparation of that return, they had
provided information regarding certain income to their CPA for which they
should have received a form 1099, but a form had not been received. Because there was no 1099, the CPA did not
get that amount of income on their return, but it was a small amount so
Petitioners did not notice that it was not on the return. The Internal Revenue Service later made changes
to their income tax return. Respondent
has picked up those changes to the income tax return, and has included a
penalty and interest. Petitioner has
now requested that the penalty and interest be waived.
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
The
Tax Commission finds sufficient cause does exist to waive the penalty
associated with the 1993 income tax return.
Sufficient cause does not exist to waive the interest. 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 20 day of July, 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 20 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
^^