02-1258

Income Tax

Signed 11/27/02

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 02-1258

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Income Tax

OF THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 2001

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER

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

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5, on October 24, 2002.

Petitioner filed his 2001 income tax return electronically by using Turbo Tax, and at the completion he was given an instruction on his computer to mail a check to the Tax Commission for the amount of the tax on or before April 15, 2002. Petitioner waited until April 15 to mail the amount due. However, on April 15, 2002, there was a large windstorm, which caused a power outage in his area because of power lines which were blown down. The power was out for a period of three days, and he was unable to retrieve from his computer the correct amount of tax to mail to the Tax Commission. As soon as the power was restored, he obtained from his computer the amount due and immediately mailed it. The payment was received at the Tax Commission only two days late, on April 17, 2002.

Respondent initially denied the waiver request because Petitioner had a similar penalty imposed for the prior year which was waived, and they understood the reason to be somewhat similar. However, upon closer examination, it appears the reason presented by Petitioner is the actual reason.

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 been shown to justify a waiver of the penalty associated with the 2001 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 27^th day of November , 2002.

____________________________________

G. Blaine Davis

Administrative Law Judge

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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

DATED this 27^th day of November , 2002.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner