90‑0106

Income

Signed 8/20/90

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

XXXXX

Petitioner, ) INFORMAL DECISION

v. )

COLLECTION DIVISION OF THE ) Appeal No. 90‑0106

UTAH STATE TAX COMMISSION, )

) Account No. XXXXX

Respondent. )

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission requesting waiver of penalty or interest assessment on Petitioner's income tax return for the tax year XXXXX. Pursuant to Utah Code Ann. '63‑46b‑5(1)(b,j), no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

The Tax Commission, in this case, erroneously duplicated credits for Petitioner's income tax return for the tax year in question. Petitioner, therefore, received a refund from the Tax Commission of $$$$$, which Petitioner paid back to the Tax Commission on XXXXX. This erroneous refund was remitted to Petitioner even though Petitioner tried to rectify the problem in XXXXX, before the refund was mailed to him. Penalties and interest have been assessed on the $$$$$ as though it were a tax amount due from the Petitioner.

FINDINGS

Utah Code Ann. ''59‑1‑401 and 59‑1‑402 provide that penalties and interest shall be assessed for the late payment and filing of taxes. Utah Code Ann. '59‑1‑401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalties assessed under the above statutes.

Such reasonable cause has been shown for waiver of the interest in this case. Petitioner already received a waiver of the penalty amount by a letter from the Tax Commission dated XXXXX. Since the difficulty was caused by the Tax Commission and Petitioner made the effort to rectify the situation, Petitioner should not be responsible for the interest amounts assessed on this account.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of interest is granted. It is so ordered.

DATED this 20 day of August, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30), after the date of final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861‑5A‑l(p) and Utah Code '63‑46b‑14(3)(a).

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