94-1618

Income

Signed 3/14/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1618

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. 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 in the file and presented at the informal hearing, the Commission makes its:

FINDINGS

A penalty of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner for her late payment of income tax for the XXXXX tax year. Petitioner had requested a waiver of the penalty and interest from the Collection Division Waiver Unit which was denied.

At the hearing Petitioner stated that because of financial difficulties she did not have the money on XXXXX to pay state or federal income tax for the XXXXX tax year. She timely filed both her state and federal tax returns with a letter stating that she would pay the amount owed as soon as she could. The Internal Revenue Service ("IRS") responded by letter to Petitioner within three weeks letting her know what penalties and interest would result from a late payment. Petitioner did not hear from the Tax Commission. On XXXXX Petitioner was able to borrow the money so she paid her income tax to the Tax Commission, plus what she thought would cover the interest, for a total of $$$$$. On XXXXX Petitioner received a letter from the Tax Commission requesting payment of penalties and interest.

Petitioner stated that the Tax Commission did not mail notice to her in a timely manner and she felt that this constituted reasonable cause to waive the penalty. Petitioner felt the Tax Commission was not providing good customer service. The IRS was able to respond faster and it processes many more returns than the State of Utah. Further, Petitioner voiced her concern that the Tax Commission was spending much more to collect the penalty and interest from Petitioner than the $$$$$ owed.

At the hearing Respondent stated that the $$$$$ late payment penalty was validly assessed and that Petitioner had not shown sufficient reasonable cause for waiver of the penalty. 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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does not exist to waive the $$$$$ penalty and approximately $$$$$ in interest for late payment of Petitioner's income tax for the XXXXX tax year..

DATED this 14 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

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).)

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