Juan B. Ortega



After erroneously claiming the personal income tax exemption for persons 65 years of age and older, the Department assessed the taxpayer tax, penalty and interest.  The taxpayer paid the assessment, and then claimed a refund of the penalty and interest.  He based his refund claim on the argument that he should not have to pay penalty and interest on his late payment because penalty and interest was being waived for other taxpayers.  In support of his argument, the taxpayer cited a newspaper article stating that the waiver of penalty and interest for participants in the state’s managed audit program had been expanded to include all taxes.  The hearing officer denied the protest, finding that the taxpayer’s assessment did not result from a managed audit and penalty and interest were properly assessed.