Signed 9/24/93






In Re:                            )

                                  :    FINDINGS OF FACT,

XXXXX,                            )    CONCLUSIONS OF LAW,

                                  :    AND FINAL DECISION


                                  :    Appeal No. 93-0628

                                  )    Account No. XXXXX




                             STATEMENT OF CASE

          This matter came before the Utah State Tax Commission for an informal hearing on XXXXX.  Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission.  Petitioners were present and represented themselves.

          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.  Petitioners timely filed their XXXXX individual income tax return, receiving a refund of $$$$$ therefrom.  Then, in XXXXX, the Tax Commission audited Petitioners' return and discovered a computation error. 

          4.  Petitioners had used federal form 1040 in reporting their federal taxes for XXXXX.  In completing their state form for the same year, Petitioners had entered one-half of their federal taxable income instead of one-half of their federal tax liability on line 6.

          5.  As a result, Petitioners owed the state $$$$$ in taxes for XXXXX.  Interest was also assessed.

          6.  The Tax Commission contacted Petitioner on XXXXX about the error and demanded payment by XXXXX.  Petitioners paid the deficiency on XXXXX.

          7.  The Commission assessed Petitioners $$$$$ for late payment.

          8.  Petitioners contend that the instruction booklet for XXXXX was confusing, leading to Petitioners' inadvertent mistake.  They feel they should not be responsible for the interest or penalty amount, especially when the Commission took over two years to contact them about the problem.

                            CONCLUSIONS OF LAW

          Applicable Utah law states the following, in pertinent part, "...the amount of any tax imposed by this chapter shall be assessed within three years after the return was filed (whether or not such return was filed on or after the date prescribed)..."

          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

          The Tax Commission agrees with Petitioners that the instruction booklet was confusing in its directions in how to fill out line 6.  For this reason, the Commission did not assess Petitioners a penalty in the first instance.

          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 tax year XXXXX in that Petitioners remitted the deficient amount only four days after the due date.  The interest amount, however, is not waived as Petitioners had use of the deficient funds up until the time of payment.  It is so ordered.

          DATED this 24th day of September, 1993.



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).