Income Tax

Signed 6/1/01


                                     BEFORE THE UTAH STATE TAX COMMISSION



PETITIONER,                                                 )    

)     ORDER

Petitioner,                                 )    

)     Appeal No.      01-0014

v.                                                                     )    

)     Account No.    #####

AUDITING DIVISION OF THE                    )

UTAH STATE TAX COMMISSION,            )     Tax Type:  Income Tax


Respondent.                             )     Judge:               Davis




G. Blaine Davis, Administrative Law Judge



For Petitioner:         PETITIONER

For Respondent:     Ms. Becky McKenzie, from the Auditing Division



                                                      STATEMENT OF THE CASE

This matter came before the Commission on May 21, 2001 for a Status Conference and was therein converted to an Initial Hearing, to be conducted pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner filed her 1997 income tax return using telefile, and based upon a misinterpretation of the instructions received, selected the wrong amount from line J of the telefile return.  Accordingly, Respondent has made a correction of the amount, and has assessed additional taxes and interest thereon at the Statutory Rate.  Petitioner has requested that the tax and interest be waived because it was "a small mistake".

The Commission does not waive taxes, but because some confusion with the form may have contributed to the mistake made by Petitioner, the Commission has determined to waive interest. 

                                                              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

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the taxes, but sufficient cause has been shown to justify a waiver of the interest associated with the 1997 income tax return of Petitioner.  It is so ordered.

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 1st day of June, 2001.



G. Blaine Davis

Administrative Law Judge



The  Commission has reviewed this case and the undersigned concur in this decision.

DATED this 1st day of June, 2001.


Pam Hendrickson                                                         R. Bruce Johnson

Commission Chair                                                        Commissioner



Palmer DePaulis                                                           Marc B. Johnson

Commissioner                                                               Commissioner