Signed 2/27/95


                                     BEFORE THE UTAH STATE TAX COMMISSION





Petitioner,                                 )           INFORMAL DECISION


v.                                                                     )


COLLECTION DIVISION OF THE              )           Appeal No. 94-1464


)           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 presented at the informal hearing, the Commission makes its:


Petitioner appealed the $$$$$ penalty assessed for the underpayment of individual income tax for the tax year XXXXX.  The Collection Division Waivers Unit had denied Petitioner's request for a waiver or reduction.

Petitioner's representative stated that the underpayment resulted from an honest error and that this was the first time a mistake had been made.   Petitioner's representative  had mistakenly used the wrong tax table in determining her daughter, the Petitioner's, income taxes.   Further, the amount of the underpayment was only $$$$$ and Petitioner's representative felt a $$$$$ penalty for this small amount was excessive.

At the hearing Respondent stated that the Petitioner had not show reasonable cause for a waiver or reduction of the penalty and the penalty was validly assessed according to law which allows for a $$$$$ or 10% penalty whichever is greater. 

                                                              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(8).)

                                                         DECISION AND ORDER

The Tax Commission finds sufficient cause does not exist to waive the penalty associated with the individual income tax for the XXXXX tax year.   It is so ordered.

DATED this 27 day of February, 1995.


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).)