94-0024

Income

Signed 9/13/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioners, : ORDER

:

v. : Appeal No. 94-0024

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. 59-1-502.5, on XXXXX. Lisa Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.

The Petitioners were assessed a late payment penalty and interest for the late payment of their XXXXX income tax return. The Petitioners allege that they filed a form TC546, together with a payment of $$$$$ on XXXXX. They filed their income tax return on XXXXX, which would be timely with an extension if the amount of taxes had been paid. The Tax Commission does not have any record of receiving the form TC546 with the payment of $$$$$. The total amount of tax due as shown on the return was $$$$$, and the Petitioners showed a prepayment of $$$$$, with a balance due of $$$$$, which was enclosed with the tax return when it was filed.

The Petitioners were not aware of the deficiency until they received a notice dated XXXXX making demand for payment for the balance due in amount of $$$$$, including penalties and interest. The Petitioners have provided a photocopy of the check dated XXXXX in an amount of $$$$$, together with a photocopy of the form TC546 which they say they filed. The Petitioners represent that the check was written on a XXXXX, and they have sufficient funds in that account so they do not regularly reconcile their account, and did not realize the check had not cleared the bank. Upon receiving the notice of the amount due, the Petitioners promptly paid the full amount of the tax, and after some further discussions with the Tax Commission, they paid the penalty and interest on XXXXX.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty, but the interest is not waived for the income tax return of Petitioners for XXXXX.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 13th day of September, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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