Signed 10/15/93





In Re:                            )


XXXXX,                            )    FINDINGS OF FACT,

                                  )    CONCLUSIONS OF LAW,

                                  )    AND FINAL DECISION


                                  )    Appeal No. 93‑0483

                                  )    Account No. XXXXX


                             STATEMENT OF CASE

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

          2.  The periods in question are the first and second quarters of XXXXX.

          3.  The Petitioner's representative, who was its owner, filed and paid the first and second quarter XXXXX withholding tax returns on XXXXX. The taxes due for those respective periods were $$$$$, and $$$$$.

          4.  The reason for the delay was that because of high overhead and mounting debts, the Petitioner was financially unable to meet those obligations.

          5.  As a result of the late filing and payment, penalties in the amounts of $$$$$ and $$$$$ were assessed for the respective quarters.

          6.  On XXXXX, the owner filed a petition for bankruptcy in the United States Bankruptcy Court.  On XXXXX, the owner received her discharge in bankruptcy.

                            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 owner's discharge in bankruptcy on XXXXX, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalties and interest associated with the withholding taxes for the first and second quarters of XXXXX.  It is so ordered.

          DATED this 15 day of October, 1993.


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).