Income Tax

Signed 3/15/01

                                     BEFORE THE UTAH STATE TAX COMMISSION



PETITIONER,                                                 )    

)     ORDER

Petitioner,                                 )    

)     Appeal No.      01-0015

v.                                                                     )    

)     Account No.    #####


OF THE UTAH STATE TAX                          )     Tax Type:  Income Tax

COMMISSION,                                             )                       Penalty & Interest


Respondent.                             )     Judge:         Davis




G. Blaine Davis, Administrative Law Judge



For Petitioner:         PETITIONER

For Respondent:     Ms. Vickie Christoffersen, from the Taxpayer Services Division

Ms. Laurie Allred, from the Taxpayer Services Division



                                                      STATEMENT OF THE CASE

This matter came before the Commission for an Initial Hearing on February 12, 2001, pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner was nearly a year late in filing his 1996 income tax return, so late filing and late payment penalties were imposed.  In addition, the return was audited in August 2000, and additional assessments were made. 

Petitioner has requested that the penalties and interest be waived.

Petitioner has at least one prior extension penalty, and did not have a valid reason why the return was filed and paid late.

                                                              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 penalties and interest associated with the 1996 income tax return.  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   15th   day of   March  , 2001.



G. Blaine Davis

Administrative Law Judge



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

DATED this   15th   day of   March  , 2001.


Pam Hendrickson                                                                     R. Bruce Johnson

Commission Chair                                                                    Commissioner



Palmer DePaulis                                                                       Marc B. Johnson

Commissioner                                                                           Commissioner