Signed 6/26/90







          Petitioners,            )    FINDINGS OF FACT,

                                  )    CONCLUSIONS OF LAW

v.                                )    AND FINAL DECISION

                                  )    Appeal No. 90‑0105



                                  )    Account No. XXXXX

          Respondent.             )



                             STATEMENT OF CASE

          This matter came before the Utah State Tax Commission for a formal hearing on XXXXX.  Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission.  Present by telephone and representing the Petitioner was XXXXX.

          Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

                             FINDINGS OF FACT

          1. The tax in question is income tax.

          2. The period in question is XXXXX.

          3. The Petitioners initially filed and paid their XXXXX income tax return in a timely manner.

          4. The petitioners were audited by the Internal Revenue Service in the spring of XXXXX.  At that time it was determined that additional taxes were owed. The Petitioner testified that she had been informed that adjustments to their Utah return would be required and was under the assumption that would be done automatically.

          5. The Petitioners did not report the change in their income for their Federal income tax return to the Commission.

          6. Notice of the audit changes were sent by the Commission to the Petitioners on XXXXX.

          7. The Petitioner testified that she was not aware of the additional taxes due to the state of Utah until XXXXX when a refund, to which she would otherwise have been entitled, for XXXXX was applied to the XXXXX liability.

          8. As a result of the late payment of the additional taxes due for XXXXX, no penalty was assessed.  However, interest calculated at the statutorily prescribed rate was assessed.

                            CONCLUSIONS OF LAW

          The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause.  (Utah Code Annotated '59‑1‑401(8).)

                            DECISION AND ORDER

          In the present case, the Commission finds that sufficient cause has not been shown which would justify a waiver or reduction of the interest associated with the XXXXX income tax year.

          In the present case, the Petitioners had an affirmative obligation to notify the Commission of any changes made to their federal income tax return for XXXXX, but failed to do so.  Additionally, records of the Commission reflect that three separate notices were sent to the Petitioners' address of record which notified them of the additional taxes due.  No explanation was given by the Petitioners as to why such notices were not received.

          Based upon the foregoing, the Commission denies the Petitioners' request to waive the interest associated with the XXXXX income tax year.  It is so ordered.

          DATED this 26 day of June, 1990.



R. H. Hansen                      Roger O. Tew

Chairman                          Commissioner


Joe B. Pacheco                    G. Blaine Davis

Commissioner                      Commissioner


NOTICE: You have ten (10) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review.  Utah Code Ann. '' 63‑46b‑13(1), 63‑46b‑14(2)(a).