93-0234 INCOME

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0234

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioners 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 individual income tax.

2. The period in question is the year XXXXX.

3. According to Tax Commission records, Petitioners filed their XXXXX individual income tax return on XXXXX. Payment was not received, however, until XXXXX. As a result, the Commission assessed Petitioners a ten percent late payment penalty plus interest.

4. XXXXX testified that he sent the return in question along with a payment check from a hotel where he was staying in Washington, D.C. in XXXXX.

5. This check was drawn on his home equity account which is an account that he does not reconcile on a regular monthly basis.

6. On XXXXX, Petitioners received notice from the Tax Commission that it had not yet received payment on the XXXXX taxes.

7. XXXXX then looked at his checking account and found that the check he had sent to the Commission had not yet cleared. He explained that he stopped payment on the first check and reissued a second check to the Commission which subsequently cleared. He has never found the lost check.

8. Petitioners paid the interest amount with the second check and now are requesting a waiver of the penalty ($$$$).

9. Petitioners have an excellent record with the Tax Commission.

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 Ann. §59-1-401(8).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the individual income tax due on the year XXXXX. Petitioners' account is deemed paid in full at this time. It is so ordered.

DATED this 10TH day of SEPTEMBER, 1993.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner