93-2375

Income

Signed 4/29/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX & XXXXX, )

Petitioners, :

) FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW,

) AND FINAL DECISION

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, ) Appeal No. 93-2375

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX, at 9:00 a.m. Commissioner Alice Shearer heard the matter for and on behalf of the Commission. Present and representing the Petitioners were XXXXX and her daughter XXXXX. Present and representing the Respondent was XXXXX 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 individual income tax for XXXXX.

2. XXXXX and XXXXX' tax form for XXXXX income tax, properly filled out, was received by the Utah State Tax Commission on XXXXX..

3. A check for $$$$$ drawn on the XXXXX was enclosed and subsequently cashed by XXXXX, the successor to XXXXX.

4. The envelope containing the check and tax form was postmarked XXXXX, bore a .294 stamp and the handwritten return address of the XXXXXs' XXXXX residence.

5. Penalties for failure to file and failure to pay plus interest were assessed by the Tax Commission.

6. A legal fee of $$$$$ was added XXXXX, when XXXXXs' did not pay upon the notice and demand letter mailed XXXXX.

7. Interest is accruing from XXXXX.

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

In letter and in person the XXXXX claim no knowledge of the whereabouts of the return and check from XXXXX to XXXXX. They claim that the envelope was mailed timely as was the one to the IRS in the same year.

The Tax Commission processed the return and sent the check for collection upon receipt in XXXXX. There is no reason to believe that the Tax Commission delayed or mishandled this transaction in any way.

There is no empirical evidence to support an allegation of wrong doing on the part of the XXXXX. XXXXX does admit that the check was not cashed timely.

The mystery of the seven year delay remains. In view of the XXXXX record of timely filing in subsequent years and the uncertainty surrounding this case, the Tax Commission rules that the penalties be waived ($$$$$). We further rule that the legal fee (a cash expense item for the Utah State Tax Commission) and interest be charged to the plaintiff as per the time value of money. This sum of $$$$$ shall be due upon receipt of this opinion.

DATED this 29th day of April, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

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(3)(a).

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