Signed 12/2/93






In Re:                            )

                                  :    INFORMAL DECISION

XXXXX,                            )

                                  :    Appeal No. 93-1427


                                  :    Account No. XXXXX



                             STATEMENT OF CASE

          This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings.  As provided for by Utah Code Ann. '63-46b-5, this decision is based upon information contained in the Tax Commission's file.


          Petitioner and the Tax Commission agree that Petitioner timely filed his XXXXX individual income tax return and remitted $$$$$ in taxes.

          The Commission, however, recomputed Petitioner's taxes after it noted that Petitioner had failed to fill in line 14 on his return.  This recalculation erroneously concluded that Petitioner was due a refund.

          The Commission sent Petitioner a refund of $$$$$.

          Then, in XXXXX, the Commission audited Petitioner based upon Internal Revenue Service information.  The audit concluded that Petitioner was not due a refund and that the $$$$$ amount Petitioner had submitted was correct.

          The Commission sent Petitioner a bill for the refund amount plus interest ($$$$$).  Petitioner called the Commission with questions thirty (30) days later.  He paid the refund amount back to the Commission six (6) days after that.

          As a result of failing to pay the tax and interest amounts within thirty (30) days of the initial billing, the Commission assessed Petitioner a $$$$$ late payment penalty.

          Petitioner is requesting a waiver of the penalty and interest amounts, contending that he had sent the correct amount of taxes in the first instance.

                            DECISION AND ORDER

          The Tax Commission finds sufficient cause does exist to waive the penalty and interest associated with the individual income tax due on the year $$$$$.  It is so ordered.

          DATED this 2nd day of December, 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 the final order to file in District Court a  petition for judicial review.  Utah State Tax Commission Administrative Rule R861-5A-1(p) and Utah Code Ann. '63-46b-14(3)(a).