94-1463

Income Tax

Signed 4/20/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1463

:

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 were XXXXX. Present and representing Respondent was XXXXX.

Penalties and interest were assessed against Petitioner relating to income tax for the tax years XXXXX. For XXXXX the underlying tax was $$$$$, the penalty assessed $$$$$ and interest approximately $$$$$. For XXXXX the underlying tax was $$$$$, the penalty assessed $$$$$ and interest approximately $$$$$. For XXXXX the underlying tax was $$$$$, the penalty assessed $$$$$ and interest approximately $$$$$. Petitioner requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.

At the conference Petitioner's representative asked that the penalties and interest be reduced because of the following: 1) XXXXX; 2) the fact that during those years in question a XXXXX concerning the state's XXXXX so the Petitioner did not know if he needed to file since his XXXXX; and 3) the fact that requiring the Petitioner to pay the penalties and interest would create a XXXXX XXXXX.

At the conference the Respondent stated that it is the tax payers responsibility to find out whether on not to file and misunderstanding of the law does not rise to the level of reasonable cause for the purpose of waiving penalties or interest.

The penalties for the years XXXXX compared to the underlying amount of the taxes owed.

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 reduce the penalty for XXXXX to $$$$$, reduce the penalty for XXXXX to $$$$$. Sufficient cause has not been shown to waive or reduce the penalty for XXXXX or the interest for the years XXXXX relating to the Petitioner's income tax.

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 20th day of April, 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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