94-1584

Income

Signed 2/23/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1584

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. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was XXXXX. Present and representing Respondent was XXXXX of the Collection Division of the Utah State Tax Commission.

Based upon the evidence and testimony presented at the informal hearing, the Commission makes it:

FINDINGS

This matter involves a penalty imposed for the XXXXX income tax year. A penalty was imposed of $$$$$ for late filing and $$$$$ for late payment. Petitioner filed a federal extension. Although Petitioner had estimated that no state tax would be due, after filing a return in May it was then determined that $$$$$ was due and owing Utah in tax liability

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

Utah Code Ann. ' 59-10-516 provides for an extension and describes the payment which is to accompany the request. Payment of the amount of tax estimated to be due shall be made on or before the 15th day of the 4th month following the close of the taxpayer's taxable year. In this instance, the fact that Petitioner's tax liability for the previous year was $$$$$ and the tax liability for the year in issue turned out to be $$$$$ leads the Commission to find that the Petitioner's estimation that zero tax would be due was not unreasonable. Therefore, neither the filing nor the payment were late.

The Tax Commission finds sufficient cause does exist to waive the penalty associated with the income tax for XXXXX. It is so ordered.

DATED this 23 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

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 R861-1-5A(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46-14(3)(a).)

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