Signed 10/27/93






In Re:                            )


XXXXX,                            )    FINDINGS OF FACT,

                                  :    CONCLUSIONS OF LAW,

                                  )    AND FINAL DECISION


                                  )    Appeal No. 93-0791

                                  :    Account No. XXXXX




                             STATEMENT OF CASE

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

          2.  The year in question is XXXXX.

          3.  For the XXXXX income tax year, the Petitioner filed a joint return with his then wife.

          4.  The Petitioner is a railroad engineer and during XXXXX was a part-time resident of Utah.  His wife, however, was employed within Utah and was a Utah resident.

          5.  The Petitioner testified that his former wife filed their XXXXX joint return and paid it by check.  Unbeknownst to him, however, the check was returned to the maker due to insufficient funds.

          6.  The Petitioner was not aware of the problem until he was notified by the Tax Commission in XXXXX.  He then contacted his former wife who indicated she would take care of the problem.

          7.  In XXXXX of XXXXX, the Petitioner learned that the taxes due for XXXXX were still outstanding and that additional amounts for penalties and interest had been assessed.

          8.  The Petitioner paid the $$$$$ in taxes due in approximately XXXXX of XXXXX and requested a waiver of the penalties and interest associated with this case.

          9.  A notice and demand for payment of the taxes due was sent on or about XXXXX.  On or about XXXXX a collection letter was sent.  On or about XXXXX a notice of issuance of warrant was mailed to the Petitioner, however, the Petitioner testified that he did not receive any of the aforementioned items.

          10.  By way of subsequent Commission action, the $$$$$ in penalty was waived.  At issue remains the approximately $$$$$ in unpaid interest.

                            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 interest associated with the XXXXX income tax year.  It is so ordered.

          DATED this 27th day of October, 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).