94-1417

Income

Signed 3/9/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1417

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Income

_____________________________________

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. An informal hearing was held on XXXXX. Jane Phan, 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.

Based upon the evidence and testimony in the file and presented at the informal hearing, the Commission makes its:

FINDINGS

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to Petitioner's individual income tax for the XXXXX tax year. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

Petitioner stated that on XXXXX she received a computer generated form letter and a refund check in the amount of $$$$$ from the Tax Commission indicating the refund was for her XXXXX income tax. Petitioner did not think she was entitled to a refund so she called the Tax Commission. She was assured by a Tax Commission employee that she was entitled to the refund which was for overpayments of estimated personal income tax prepayments. Petitioner, still doubting that she was owed the refund, called her accountant who thought that maybe the Tax Commission had refunded instead of applying overpayments.

Several months latter Petitioner received another letter from the Tax Commission which said Petitioner had underpaid her XXXXX income tax by $$$$$. The letter continued that now the Petitioner must pay $$$$$ plus $$$$$ in penalties and $$$$$ in interest. Petitioner immediately called the Tax Commission and when she explained about the refund was told by a Tax Commission employee to pay the $$$$$ and the penalties and interest would be waived. Petitioner promptly returned her refund but the penalties and interest were not removed from her account.

At the conference Respondent stated that the account history confirmed Petitioner's representations and recommended waiving the penalty.

APPLICABLE 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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalty of $$$$$ and the approximately $$$$$ of interest relating to Petitioner's income tax for the XXXXX tax year.

DATED this 9 day of March, 1995.

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 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.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46b-14(3)(a).)

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