93-0468

Income

Signed 9/24/93

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: FINDINGS OF FACT,

XXXXX, ) CONCLUSIONS OF LAW,

: AND FINAL DECISION

)

: Appeal No. 93-0468

) Account No. XXXXX

:

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, Petitioners' certified public accountant.

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 and paid their XXXXX individual income taxes on XXXXX. As a result, two ten percent late penalties were assessed plus interest.

4. Later, the Commission abated one of the ten percent penalties.

5. Petitioners are requesting a waiver of the remaining penalty and interest amounts.

6. XXXXX, Petitioners' certified public accountant, testified that Petitioners sent the return and payment in question by certified mail well before the filing deadline. Mr. XXXXX produced certified mail receipt #XXXXX that shows a delivery date of XXXXX to the I.R.S. which was Petitioners' federal return for XXXXX. Further, Mr. XXXXX submitted certified mail receipt #XXXXX addressed to the Tax Commission. This receipt, however, was ripped in half and missing the delivery information.

7. According to Mr. XXXXX, Petitioners contacted him when they realized that their check to the Tax Commission for their XXXXX taxes had not yet cleared their bank account. Petitioners put a stop payment on their check and re-issued a second check along with a copy of their XXXXX return.

8. Petitioners contend that they should not be penalized for the missing check when they sent it in on time.

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

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 remaining ten percent penalty associated with the individual income tax due on the year XXXXX. The interest amount is not waived, however, as Petitioners had access to these funds during this time. Interest is computed from XXXXX to XXXXX only. It is so ordered.

DATED this 24th 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

NOTICE: You have twenty (20) 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).

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