87-3248 - Income





            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

COLLECTION DIVISION OF THE                          :           Appeal No. 87-3248

            UTAH STATE TAX COMMISSION,            :           Acct. No. XXXXX

            Respondent.                                                     :



            This is an appeal to the Utah State Tax Commission from a decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on individual income tax account No. XXXXX for XXXXX.  An informal hearing was held on XXXXX in the offices of the Utah State Tax Commission.  David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission.  XXXXX represented the Petitioner.

            Petitioner stated that for the tax year in question, he had his return prepared at the XXXXX office of XXXXX.  This particular office was a franchise.  Petitioner had submitted the necessary materials by XXXXX.  The agent at the XXXXX office became ill soon afterwards.  Petitioner continued to check with the agent and his wife and was assured that all would be taken care of and that an extension had been filed.  The office was, in fact, locked up on XXXXX.  By XXXXX, Petitioner realized that his return had not been filed and contacted the XXXXX district office in XXXXX.  The XXXXX office moved into the XXXXX area to clear up the situation.  The XXXXX office was able to obtain the necessary information from the XXXXX office by XXXXX and prepared the returns shortly thereafter.  Petitioner has paid the tax and interest and requests a waiver of the penalty.


            Penalty in this matter was properly assessed.  The return was, in fact, filed late.  However, the Tax Commission in its discretion hereby waives the penalty because Petitioner tried to obtain assurances that his taxes would be timely prepared, because the late filing was beyond Petitioner's control, and because Petitioner took immediate steps to remedy the situation.


            Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on individual income tax account No. XXXXX for XXXXX be granted.  Interest shall remain as originally assessed.

            The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

            DATED this 29 day of April, 1988.