Signed 9/22/93






In Re:                            )


XXXXX,                            )    FINDINGS OF FACT,

                                  :    CONCLUSIONS OF LAW,

                                  )    AND FINAL DECISION


                                  )    Appeal No. 93-0640

                                  :    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.  Petitioner was present and represented herself.

          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.  Petitioner filed and paid her XXXXX individual income taxes on time.  Then, in XXXXX, the Tax Commission reconciled its records with the Internal Revenue Service.  As a result, the Commission corrected Petitioner's state return based upon the fact that Petitioner had inadvertently filed her XXXXX taxes under married, head of household status instead of her true status as single.

          4.  As a result, Petitioner owed an additional $$$$$ in taxes plus interest.

          5.  Petitioner timely paid the additional tax amount in XXXXX and then filed a waiver request of the interest amounts.

          6.  While awaiting a decision on the waiver request, the Tax Commission assessed Petitioner a $$$$$ penalty for late payment because Petitioner had not paid the interest amount within 30 days.

          7.  Months later Petitioner paid the interest charge to avoid accruing interest.

          8.  Petitioner feels that the Tax Commission took too long to inform her of the error on her return in the first place.  She feels that she should not be held accountable for the time lapse by being assessed a late penalty and interest amount.

                            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).)

          Further, "...the amount of any tax imposed by this chapter shall be assessed within three years after the return was filed".  (Utah Code Ann. '59-10-536(1).)

                            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.  Interest is to be computed to XXXXX.  No other interest amount is abated as Petitioner had the use of the tax money up until the time she paid the Tax Commission the deficiency.

          By way of clarification, as much as Petitioner feels that the Commission took an unreasonable amount of time to discover her error, the statute does allow the Commission a three-year period to make corrections on filed returns.

          It is so ordered.

          DATED this 22nd 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).