Signed 7/26/94






XXXXX,                       )

Petitioner,        :


v.                           :



UTAH STATE TAX COMMISSION,   )    Appeal No. 94-0241

Respondent.        :    Account No. XXXXX




                       STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an informal hearing on XXXXX.  G. Blaine Davis, Presiding Officer, heard the matter for and on behalf of the Commission.  Present and representing the Petitioner was XXXXX.  Present and representing the Respondent 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 period in question is XXXXX.

3.  Petitioner timely filed his XXXXX tax return, and paid the full amount of tax shown to be due thereon.

4. Petitioner was sent a letter on XXXXX, informing him that there had been an error on his return assessing additional tax to him in an amount of $$$$$.

5. Petitioner contacted the office of the Utah State Tax Commission, and was told that the additional tax had been assessed against him because he did not send a XXXXX, dealing with the income from his XXXXX.  This was the first year for which he had XXXXX and was required to consider it in filing his income tax return.

6. He then sent in the XXXXX during XXXXX, but on XXXXX XXXXX, was informed by letter that it was not the XXXXX which had caused the problem.  He thereafter paid the amount of $$$$$ of additional tax on XXXXX.

7. Petitioner thereafter received a letter indicating that a penalty had been assessed against him for failing to pay XXXXX from the day the notice of additional tax was sent to him.

8. Petitioner thereafter came to the Tax Commission and paid the $$$$$ penalty plus interest and filed a request for the waiver.

                      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

penalty associated with the XXXXX income tax return.  It is so ordered.

DATED this 26th day of July, 1994.


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 a final order to file a Request for Reconsideration with the Commission.  If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court.  (Utah Administrative Rule R861-1-5A(P) and Utah Code Ann. ''63-46-14(3)(a) and 63-46b-15.)