94-1374

Income

Signed 2/27/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioners, : ORDER

:

v. : Appeal No. 94-1374

:

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. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioners were XXXXX. Present and representing Respondent was XXXXX.

Petitioner is appealing a penalty of $$$$$ and interest of $$$$$ assessed relating to the late filing and payment of income taxes for the tax year XXXXX. The Collection Division Waiver Unit denied waiver of the penalties and interest.

For the tax year ending XXXXX the State of Utah owed Petitioners a refund of $$$$$ and Petitioners clearly requested on their Form TC-40 that the refund be credited to the XXXXX estimated tax.

Petitioners were then late in filing for the XXXXX tax year. They did not file until XXXXX. In the meantime the Tax Commission had issued and delivered a refund check of the $$$$$, from the XXXXX tax year, to Petitioners in XXXXX, nearly XXXXX after the date the XXXXX return should have been filed. At the conference Petitioners acknowledge receiving the refund check for the $$$$$, but stated that they did not know what it was for since they were receiving other refund checks around that time. Petitioners had thought the tax year XXXXX was taken care of until they received notice in XXXXX that there was an amount owed in taxes plus penalties and interest.

At the conference Respondent agreed that there would not have been an amount owed if the XXXXX refund had been applied to the XXXXX taxes as requested by Petitioners and recommended waiving the $$$$$ penalty. Respondent stated the interest should remain because of Petitioner's late filing of the XXXXX return and the fact that they had received the refund check for the $$$$$ in 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 of $$$$$ for

the tax year ending XXXXX. Sufficient cause has not been shown to waive the interest assessed.

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 27th day of February, 1995.

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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