94-1418

Income Tax

Signed 3/28/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioners, : ORDER

:

v. : Appeal No. 94-1418

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income Tax

_____________________________________

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 Petitioner was XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to income tax for the tax year XXXXX. The underlying amount of the income tax owed for the year in question was $$$$$. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the conference Petitioner explained that XXXXX who was XXXXX, was XXXXX. Petitioner XXXXX to be with XXXXX and when XXXXX XXXXX Petitioner not only had to XXXXX but she had to XXXXX XXXXX. This left Petitioner unable to file income taxes by the XXXXX deadline. Petitioner had thought she could get an extension but did not realize a prepayment was necessary.

At the hearing Respondent stated that the extension was invalid because a prepayment had not been made but, that because of the XXXXX, Respondent felt Petitioner had shown sufficient reasonable cause to waive the penalty.

In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.

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 penalties of $$$$$ for the Petitioner's XXXXX income tax. Sufficient cause has not been shown to waive the approximately $$$$$ in interest.

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 28th 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

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