Penalty and Interest

Signed 2/18/03


                                     BEFORE THE UTAH STATE TAX COMMISSION



PETITIONER,                                                 )    

)     ORDER

Petitioner,                                 )    

)     Appeal No.      02-1822

v.                                                                     )    

)     Account No.    #####


UTAH STATE TAX COMMISSION,            )     Tax Type:  Penalty & Interest


Respondent.                             )     Judge:               Phan                      




Jane Phan, Administrative Law Judge



For Petitioner:         PETITIONER

For Respondent:     Vickie Hymas, Tax Compliance Agent



                                                      STATEMENT OF THE CASE

This matter came before the Commission for an Initial Hearing on February 13, 2003.

                                                              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).


Petitioner is appealing the assessment of interest totaling $$$$$ for the late payment of her 2001 individual income tax return.  Respondent had waived the late payment penalty assessed for the same period. 

Petitioner explained the unfortunate circumstances which resulted in the late payment and filing.  Her husband was diagnosed as terminally ill in December 2001 and died on April 10, 2002.  As he had previously done their tax filings it took Petitioner some time to find the information and have the returns prepared.  She filed the returns and paid the tax in October 2002.  

Respondent indicated that because of these circumstances the penalty had been waived.  She stated that interest, however, was waived only in the event an error on the part of the Tax Commission or Tax Commission employee resulted in the late payment. 

The assessment of interest is based on statute as Petitioner retained the use of the funds while the Tax Commission was denied the use of the funds from the time the tax was due until it was actually paid.  

                                                         DECISION AND ORDER

Based upon the foregoing, although the Commission is sympathetic to Petitioner's circumstance, the Commission finds that sufficient cause has not been shown to justify a waiver of the interest of $$$$$ associated with Petitioners 2001 income tax filing. 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   18th   day of   February  , 2003.



Jane Phan

Administrative Law Judge



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

                        DATED this   18th   day of   February  , 2003.



Pam Hendrickson                                                                     R. Bruce Johnson

Commission Chair                                                                    Commissioner






Palmer DePaulis                                                                       Marc B. Johnson

Commissioner                                                                           Commissioner