88-0091 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0091

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission for reconsideration of a Commission decision denying a request for waiver of penalty and interest assessments on Petitioners' XXXXX income tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b), no hearing was held. A review of Petitioners' file served as the evidentiary basis for this decision.

Petitioners, XXXXX, filed a timely income tax return for XXXXX. However, Commission records indicate that payment of taxes due was never received. Petitioners were assessed a late payment penalty and interest. After receiving notice of the delinquency Petitioners took immediate steps to remedy the situation. Petitioners stopped payment on the check originally sent with the return and issued the second check for the tax due. Petitioners provided a signed affidavit from their administrative assistant verifying that the check was indeed remitted with the return and now request that all penalty and interest assessments be waived.

FINDINGS

Because Petitioners acted promptly to remedy the delinquency problem and has supplied a notarized affidavit verifying that the check was indeed mailed, the Petitioners have met the burden of proof placed upon them to establish that their petition should be granted. Utah Admin. R. R861-07A-1(G) (1986). Therefore, the late payment penalty merits waiver; however, Petitioner did have use of the money during the six month period from the tax due date to the time it was actually received by the Commission. Therefore, the Commission is entitled to the interest assessed for that time.

DECISION AND ORDER

Based on the foregoing, it is the decision and order of the Commission that the request for a waiver of penalty be granted, request for a waiver of interest is denied.

DATED this 5 day of October, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner