94-1606

Income

Signed 2/23/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1606

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income

_____________________________________

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

Penalty and interest was imposed for XXXXX and XXXXX of XXXXX in conjunction with late payment and filing of sales tax.

Petitioner indicated at the hearing that the business was closed on XXXXX. All existing assets were liquidated in an attempt to pay all of the company's obligations.

The XXXXX penalty was waived based on first time error, leaving only $$$$$ in interest due and owing. The penalty for XXXXX was $$$$$ with approximately $$$$$ of interest. Respondent indicated at the hearing that the financial trouble of the company did not constitute reasonable cause for a waiver of the penalty imposed for XXXXX of XXXXX. Respondent suggested that the Petitioner pursue an offer in compromise if indeed financial hardship renders the company unable to pay the amount due and owing.

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 Annotated59-1-401(8).

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties for XXXXX or the interest for October or XXXXX.

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 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

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