88-1227 - Income

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-1227

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 interest assessments on Petitioners' XXXXX and XXXXX personal income tax returns. 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 returns for XXXXX and XXXXX in XXXXX. Petitioners had worked with their accountant and the Tax Commission for several months in an effort to determine their tax obligations for the subject years. The Tax Commission waived all penalties and, Petitioners assert, agreed to accept payment for the tax and interest charges calculated to approximately XXXXX as payment in full. However, after the agreed amount was paid, interest charges continued to accrue on the account. Petitioners request a waiver of these charges based on the agreement made with the Tax Commission.

FINDINGS

Utah Code Ann. §59-1-401(7) authorizes the Commission to waive penalty and interest assessments, and the Commission will do so upon the showing of reasonable cause. Because Petitioners voluntarily came forward and made every effort to clear their tax liabilities, and because they relied upon information they received from the Commission indicating their payment would be accepted as payment in full, the Petitioners have shown reasonable cause for waiver of the additional interest assessments.

DECISION AND ORDER

Based on the foregoing, it is the decision and order of the Commission that the request for a waiv