94-1627

Income

Signed 4/20/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioners, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1627

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. Although duly notified of the date, time and location of the hearing Petitioners were not present. Present and representing Respondent was XXXXX.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioners relating to income tax for XXXXX. Petitioners had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioners now appeal this denial. The amount of the Petitioners' income tax liability for XXXXX was $$$$$ of which Petitioners' employee withholding paid all but $$$$$.

In the letter from Petitioners requesting this appeal, Petitioners stated that they had mailed the income tax return and check on XXXXX. Later in filing an amended return Petitioners asked a Tax Commission employee about their account and learned that the Tax Commission had not received the original return. Petitioners immediately sent in copies of the return and a new check for $$$$$ prior to receiving any request to do so from the Tax Commission.

Respondent stated that Petitioners' account history indicated that this was Petitioners' first error and that Petitioners did discover and correct the error prior to any action being taken by the Tax Commission. Respondent recommended waiving the penalties.

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 exist to waive the penalties of $$$$$ relating to Petitioners' income tax for XXXXX.

DATED this 20 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

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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1-5A(P) and Utah Code Ann. '63-46b-15.)

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