Jensen v. State Tax Commission

STEWART, Justice:

This case is here to review a final decision of the Utah State Tax Commission affirming an amended audit against Michael and Karen Jensen for $344,419 in unpaid income taxes, penalties, and interest. We reverse in part and remand for further proceedings.

In early 1978, the Jensens filed a joint Utah income tax return for the year 1977 reporting wages in the amount of $4,512 and losses totalling $4,852 from two partnerships, Kinjak and Sound Management Association. The following year, Michael Jensen filed a 1978 return, but reported only his name and address, his status as a…